EURUSD: The euro’s value is defending the 1,06 threshold as it awaits US employment (Non-Farm Payroll) statistics on Friday.
In European trade on Friday, the currency pair is maintaining a weekly increase over the 1.0600 level. The duo is supported by further weakening in the US greenback & US government bond rates. The focus is on the United States NFP statistics for new signals of direction.
Key Points & Considerations
On Friday, the EURUSD traded in a small trading range as traders anticipate the US non-farm payrolls data.
Before planning for additional gain, a negative signal formation should be avoided.
Anything under 1.0600 may entice little dips buying around rising range supports.
Technical Perspective & Analysis
The EURUSD currency pair maintains stable during the Asian period on Fri. It appears to have successfully halted its late-night drop that hit the 1.0670 to1.0675 mark. Representing the week’s top, for the time being. The spot prices are now trading at 1.0625 to1.0630 level, essentially steady for the duration of the day. While investors wait the United States NFP news prior to preparing for the next phase of the direction trend.
From the perspective of technical analysis, oscillations on the daily graph have begun to generate upward impetus. Bolstering possibilities for a substantial gaining rise amidst predictions that the Federal Reserve, is close to the conclusion of its rate-rise run. However, the recent setbacks near the 50 (D-SMA) call for prudence while putting optimistic wagers on the EURUSD cross.
Furthermore, the rebound of the Yearly bottom, near 1.0445 to1.0450 mark in Oct. Within an ascending route, marks the construction of a negative signal structure. Over the setting of a major decline from a seventeen-month top reached during June.
Bullish View
As a result, the 1.0665 to1.0670 zone might keep serving as an imminent significant obstacle. With the pair aiming to retake the 1.0700 level to test the highest point of the aforesaid trending channel. That is now located near the 1.0715 area. A persistent rise over the last one will cancel out the negative setting and open the door for more rises. The spot price could then intensify their upward movement targeting the subsequent relevant barrier located at the 1.0765 level. Along their way towards the 1.0800 rounded number.
Bearish View
On the other hand, dip beneath 1.0600 appears to be attracting certain investors near the 1.0570 level. Which is close to rising channel assistance. That follows by a 2-week bottom, within the 1.0520 to1.0515 range, plus the 1.0500 psychological level. Where if forcefully violated could be considered as a new catalyst for negative speculators. The EURUSD duo may possibly go under the 1.0450 to1.0445 level, or the year-to-date trough, and challenge the 1.0400 rounding number.
