EUR/USD side-lined near 1.1220 ahead of US payrolls

Having found buyers just ahead of 1.12 handle on several occasions since the last US session, the EUR/USD pair extends its side-trend near 1.1220 region in early Europe.

EUR/USD: 1.1150 or 1.1268 on NFP?

The spot remains better bid, although confined in an extremely narrow range, as the USD bulls take a breather and consolidate yesterday’s upbeat ADP data-backed rise ahead of the all-important US labour market report.

Markets are expecting an upside surprise to the US payrolls data, especially after a strong ADP jobs report released yesterday, and hence, broad based US dollar rally appears to have already discounted an upbeat NFP data. Therefore, positive payrolls could trigger ‘Sell the fact’ trading in the buck, which could drive EUR/USD above 1.1268 levels.

In the meantime, the spot will receive some trading impetus from the sentiment on the European markets, in absence of relevant economic releases from the Euroland.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet noted: “Much of the upcoming direction will depend on the outcome of the NFP report, with the scale lean towards the upside. The pair topped at 1.2156 this week, and at 1.2167 for May and 2017, the level to surpass to confirm further gains ahead. Below 1.1160, on the other hand, the downward corrective movement could extend down to 1.1080 without actually affecting the dominant bullish trend. Support levels: 1.1200 1.1160 1.1120 Resistance levels: 1.1265 1.1300 1.1345.”