FXstreet.com (Barcelona) - The single currency picked up pace to re-test the key resistance at 1.3100 on Friday after ECB’s E.Nowotny tried to talk down the likeliness of negative interest rates on deposits, arguing that the markets ‘overinterpreted’ Draghi’s words.

In light of the NFP due later, John Kicklighter, Senior Currency Strategist at DailyFX, commented “We don’t have to hit the Fed’s target 6.5 percent mark to see an easing in QE purchases – that is the milestone for rate cuts. Below 7.5 percent, there may be enough evidence to carry the argument to reduce the monthly, $85 billion purchases of Treasuries and MBS”.

The cross is now up 0.19% at 1.3091 facing the next hurdle at 1.3220 (high May 2) ahead of 1.3232 (daily cloud top) and then 1.3243 (high May 1).
On the flip side, a breakdown of 1.3037 (low May 2) would open the door to 1.2988 (low Apr.25) and finally 1.2968 (MA200d).