EUR/USD falls above 1.0500 as ECB’s Lagarde expresses warning ahead of the US NFP probe.

VOT Research Desk

EUR/USD reflects the market’s cautious mindset as it trades near a five-month high near 1.0530 early Friday.

However, the recent immobility of the major currency pair could be linked to conflicting concerns over probable gloomy US job data and economic concerns raised by key authorities in the US and Europe.

Christine Lagarde, President of the European Central Bank (ECB), recently mentioned the importance of short-term and tailored fiscal policy.

All policies must work together for sustainable growth, the policymaker added. Moving on, the EUR/USD is likely to stay dormant due to a light schedule ahead of the US employment data and a cautious mentality.

However, the bulls are likely to maintain their lead as headline Nonfarm Payrolls (NFP) are predicted to fall to 200K versus 261K. Short-term EUR/USD downside is limited by a four-month-old upward-sloping prior resistance line, which is now support near 1.0500. Meanwhile, the pair’s upward movement could target the late June swing high at 1.0615.