- The euro remains by far the best performer among the G10.
- EUR/USD bullish tone intact despite overbought levels.
- The US employment report is coming.
The EUR/USD is rising for the sixth day in a row on Friday, ahead of the US jobs report. The pair just hit the highest intraday level since November at 1.1483. Euro has yet to break out of the 1.1475/80 zone but remains firm ahead of key US data.
After the meeting of European Central Bank (ECB) on Thursday, the euro began a rally throughout the market, which is still continuing. Christine Lagarde’s “hawkish” tone, denying that interest rates will not rise in 2022, was compounded by reports that the central bank would recalibrate monetary policy at the meeting. Everything contributed to the strong rises in the euro.
The EUR/USD rose over 100 pips on Thursday and continues to rally on Friday, despite the dollar rising against most of its rivals. A challenge for the pair will come at 13:30 GMT on US jobs data. Non-Farm Payrolls are expected to rise by 150,000, although risks appear skewed to the downside after Wednesday’s ADP report which had worst read in months
EUR/USD’s bullish tone remains firm. It is facing the January high zone at 1.1470/80. Should it manage to assert itself above, the euro will be ready to go towards 1.1500. Above, the next significant resistance is at 1.1520 (Oct 2021 lows).
In case of not being able to affirm itself above 1.1480, a consolidation or a downward correction would be expected. Supports are now seen at 1.1430, followed by 1.1370/80 and the 20-day moving average at 1.1330.
Technical levels
Source: Fx Street
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