EUR/USD: Bullish consolidation to extend ahead of EZ CPI
|- DXY weaker in Asia.
- Will the US NFP save the US dollar?
- The 1.2092 Sept High holds the key.
Having failed just shy of the 1.2092 2017 high in the US last session, the EUR/USD pair retreated on profit-taking, now extending the overnight side trend, as investors await the Eurozone flash CPI estimate and US payrolls data for fresh trading impetus.
EUR/USD: Positive sentiment persists
Amid subdued trading activity seen around the US dollar and Treasury yields, the main currency pair manages to maintain the bid tone, as the bulls gather pace for another test of 2017 tops. The USD index trades modestly flat near daily lows of 91.54, in the wake of a typical pre-NFP caution trading, as a downbeat US payrolls print will weigh heavily on the Fed rate hike expectations for this year.
Meanwhile, expectations of a softer Eurozone flash CPI estimate could keep the upside limited in the spot, with a range breakout eagerly awaited on the US NFP release. In the meantime, the major is likely to closely track the USD price-action while the sentiment around the Euro to remain buoyed amid a slew of the latest macro news, suggesting the strongest growth seen in 2017 in nearly seven years.
EUR/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet: “In the 4 hours chart, the indicator has turned lower, currently pressuring its mid-line. Yet at the same time, the price recovered well above a bullish 20 SMA, while the RSI indicator hovers around overbought readings. The 1.2100 region is a key resistance area as above it, the pair has scope to extend its advance up to 1.2260 next week, the next strong static resistance level. Support levels: 1.2030 1.2000 1.1960. Resistance levels: 1.2100 1.2140 1.2175.”
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