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4 Sep 2015
EUR/USD in flat-lining around 1.1130, German data eyed
FXStreet (Mumbai) - The EUR/USD pair trades around a flat line ahead of Europe open, extending its overnight side-trend, as attention now shifts towards the German factory orders ahead of the much-awaited US payrolls data due later in the New York session.
EUR/USD capped below 1.1140
The EUR/USD pair trades modestly flat at 1.1123, extending its recovery from two-week lows reached at 1.1086 on Thursday. The major hovers above 1.11 barrier, slightly bid during the Asian session as the traders gave up the US dollar – the new risk currency on resurfacing risk-off sentiment ahead of the US NFP figures.
On Thursday, EUR/USD suffered heavy losses mainly amid the comments of European Central Bank (ECB) President Mario Draghi during the press conference following the ECB rate decision.
As mentioned, ECB Draghi admitted the potential expansion of the current quantitative easing program if necessary, while downwardly revised the Euro zone growth as well as inflation forecasts.
Looking ahead, markets now await the most influential data of this week; the NFP from the US for fresh cues on the Fed rate hike timing and eventually on further USD moves.
Forecasters are anticipating non-farm payrolls to have risen by 217,000 last month in the US, up marginally from the 215,000 increase in July. This could send the unemployment rate to 5.2%, its lowest in more than seven years.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1188 (Aug 14 High), above which gains could be extended to 1.1213 (Aug 12 High) levels. On the flip side, support is seen at 1.1086 (Sept 3 Low) below which it could extend losses to 1.1023 (Aug 12 Low) levels.
EUR/USD capped below 1.1140
The EUR/USD pair trades modestly flat at 1.1123, extending its recovery from two-week lows reached at 1.1086 on Thursday. The major hovers above 1.11 barrier, slightly bid during the Asian session as the traders gave up the US dollar – the new risk currency on resurfacing risk-off sentiment ahead of the US NFP figures.
On Thursday, EUR/USD suffered heavy losses mainly amid the comments of European Central Bank (ECB) President Mario Draghi during the press conference following the ECB rate decision.
As mentioned, ECB Draghi admitted the potential expansion of the current quantitative easing program if necessary, while downwardly revised the Euro zone growth as well as inflation forecasts.
Looking ahead, markets now await the most influential data of this week; the NFP from the US for fresh cues on the Fed rate hike timing and eventually on further USD moves.
Forecasters are anticipating non-farm payrolls to have risen by 217,000 last month in the US, up marginally from the 215,000 increase in July. This could send the unemployment rate to 5.2%, its lowest in more than seven years.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1188 (Aug 14 High), above which gains could be extended to 1.1213 (Aug 12 High) levels. On the flip side, support is seen at 1.1086 (Sept 3 Low) below which it could extend losses to 1.1023 (Aug 12 Low) levels.