EUR/USD gathers pace, takes-out 1.1400 ahead of NFP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bullish tone behind the EUR gathers pace in the European session, now taking EUR/USD above 1.14 handle, as risk-off sentiment and upbeat PMIs underpin.

    EUR/USD higher on cross driven strength

    Currently, EUR/USD trades +0.18% higher at fresh session highs of 1.1404, looking to test fresh 2016 highs reached yesterday at 1.1412. The main currency pair regained ground over the past few hours and now extends its bull run into a fifth straight session this Friday as the better-than expected manufacturing PMI readings from Eurozone as well as Germany helped lift the sentiment around the EUR.

    Moreover, subdued trading witnessed in the US dollar against its major peers combined with cross driven strength adds to upside bias in the EUR/USD pair. The renewed strength in the EUR/GBP cross following weak UK manufacturing PMI report aids the upbeat tone surrounding the major.

    With the macro updates from Euroland now behind, focus turns towards the highly decisive US employment report due later today. Markets are expecting another 205,000 jobs to be added in March versus 242,000 jobs addition seen in Feb.

    EUR/USD Technical Levels

    In terms of technicals, the pair finds the immediate resistance at 1.1450/69 (Oct 2015 levels/ daily R2). A break beyond the last, doors will open for a test of 1.1500 (key psychological levels). On the flip side, the immediate support is placed at 1.1356/50 (1h 50-SMA) below which at 1.1322/18 (daily S1/ 5-DMA) could be tested.
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