EUR/USD looks to conquer 1.10 handle ahead of NFP

The EUR/USD pair made another attempt to regain 1.10 handle in the Asian session, but in vain, as the bulls faced exhaustion after yesterday’s upsurge, leaving the rate hovering near six-month tops of 1.0990.

The spot has entered a phase of upside consolidation, as we progress towards the European opening bells, after having met fresh demand near 1.0970 region earlier on the day. The US dollar trades broadly subdued, despite higher treasury yields, as traders refrain from placing any fresh positional bets on the buck ahead of the highly-influential US payrolls data.

On Thursday, the euro rallied high against its American counterpart, as stops got triggered above 1.0950 levels, with investors having priced-in a Macron victory in the French presidential election that takes place this Thursday. The latest opinion poll conducted by Elabe showed Macron is seen beating Le Pen by 62/38.

All eyes now remain centered on the US labor market report amid a lack of first-tier releases from the Euroland. The Eurozone retail PMI data will in an otherwise light EUR calendar today.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank notes, “EUR/USD’s near term outlook is more positive: Euro has eroded a 5 month downtrend, the 55 week ma at 1.0929, the 61.8^% retracement at 1.0974 and charted an outside day to the topside. It is bid the 200 day moving average at 1.0833. It targets the January 2015 low at 1.1098 and the 1.1146 78.6% retracement. We note the 13 count on the 240 minute chart and will wait to buy on a dip.”