EUR/USD struggles to rise above 1.1890 ahead of NFP

EUR/USD extends its 20-pips range play into the European session, although sentiment remains underpinned by ongoing broad based US dollar weakness.

EUR/USD: All eyes on US payrolls

The spot is seen trying several attempts to regain NY lows near 1.1890 levels, but in vain, as a typical pre-NFP caution trading prevails, with investors refraining to place any directional bet on EUR/USD.

Moreover, solid German factory orders and construction PMI data also keep the common currency lifted, while the greenback continues to remain under pressure across the board, in the wake of the US political turmoil.

The Trump administration failure to deliver on reforms so far, while the scandal on alleged links with Russia also sours sentiment. Additionally, weak ISM manufacturing PMI, housing and ADP jobs data further collaborated to the recent USD sell-off.

Later today, the main currency pair could regain 1.19 handle should the US jobs data disappoint. On the other hand, a solid labor market report could capped the recent bullish run in EUR/USD, knocking-off the rate towards 1.1750 levels.

EUR/USD Technical Set-up  

According to Jim Langlands at FX Charts: “A soft outcome to the jobs data would see the Euro head back above 1.0910, and there is very little resistance to stand in the way of a move towards 1.2000, with the next Fibo level is not actually seen until 1.2165 (50% of 1.3993/1.0340). While the daily momentum indicators are overbought, hinting at a possible correction, the weekly and monthly charts are both heading firmly higher.”

“On the downside, near term support arrives at the session low and then, below 1.1800, at the 200 WMA at 1.1785. Below there, we could head back to the 31 July low of 1.1722 and eventually to 28 July’s low of 1.1670, although a little unlikely at this stage, “Jim added.