Prior to the US jobs data, EUR/USD maintains moderate advances above 1.1000.
FUNDAMENTAL OVERVIEW
Following the recovery observed in the Asian session, EUR/USD entered a stabilisation period above 1.1000 on Friday. The next driving force for the pair will be US April Nonfarm Payrolls data. Investors will closely monitor news stories related to the financial crisis.
After closing in the red on Thursday, the EUR/USD pair has now climbed back over 1.1000. As investors stay away from the market ahead of the US April jobs report, the pair is relatively quiet during Friday’s European trading hours.
As predicted, the European Central Bank (ECB) increased its benchmark interest rates by 25 basis points (bps). Although the ECB did not explicitly declare that there would be future rate increases in the policy statement, ECB President Christine Lagarde made it clear that the tightening cycle was not being paused. Although Lagarde recognised that some governors believed a 50-bps increase would be fair, she reaffirmed that there were still substantial upside risks to inflation.
US market index futures are trading favourably early on Friday. The USD may struggle to find demand if risk flows resume before the weekend. On the other hand, if shares of regional banks continue to fall, the USD should be able to maintain its position.
The US labour market data will also be closely watched by market investors. Nonfarm Payrolls are anticipated to increase by 179,000 in April. The CME Group Fed Watch Tool now indicates that markets are certain that the US Federal Reserve will maintain its policy rate in June. A positive NFP print, close to 250K, might boost hopes for a second-rate hike in June and support the USD in the short term.
EUR/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
EUR/USD is currently trading in up channel.
EUR/USD is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
EUR/USD resistance is at 1.10256 & its immediate support level is 1.10000
HOW TO TRADE EUR/USD
The price of EUR/USD is currently in a support zone. If this support zone breaks, further fall to the next support level are expected.
