The EUR/USD pair is seen consolidating in a narrow range just below 1.11 barrier as we head into early Europe, with sellers lurking in response to renewed demand for the US dollar ahead of the US NFP data due later on Friday.
100-DMA at 1.1130 – key upside resistance
Currently, EUR/USD trades modestly lower at 1.1096, having struck session lows at 1.1088 post-China open. The EUR/USD remains better offered, despite a cautious environment as the USD bulls attempt a minor-corrective move on profit-taking ahead of the highly-influential US labor market report. Meanwhile, the US dollar paused its 3-day sell-off and edged +0.07% higher against its main competitors, keeping the DXY firmer above 97 handle.
Moreover, a weaker EUR/GBP cross on the back of renewed strength seen in cable, in response to the UK high court ruling and BOE’s dialing back further rate cuts, also collaborates to the persisting bearish bias seen in the spot.
Attention turns towards the US NFP report due later in the NA session. In the meantime, markets await the final services PMI reports from the Euro area for fresh incentives.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.1130 (100-DMA). A break beyond the last, doors will open for a test of 1.1168 (daily S2) and from there to 1.1195 (200-DMA). On the flip side, the immediate support is placed at 1.1088 (daily low) below which 1.1067 (5-DMA) and 1.1000 (psychological levels/ 10-DMA) could be tested.
To learn more about this topic, check our video analysis.
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