EUR/USD: Bull’s determination to regain 1.2100 looks to Lagarde, US NFP


  • EUR/USD pokes intraday high amid a quiet session.
  • EU, US backs waiver of covid vaccine IP, Fed policymakers, except for Kaplan, reject rate hikes.
  • Risk-on mood battles pre-NFP trading lull, German data, ECB President Lagarde’s speech eyed for intermediate moves.

EUR/USD picks up bids around 1.2068, up 0.03% intraday, while heading into Friday’s European session. In doing so, the currency major pair portrays a typical pre-NFP trading lull after rising the most in two weeks the previous day.

On Thursday, the US and the European Union (EU) agreed to back the waiver of the coronavirus (COVID-19) vaccine patent protections. The move triggered market optimism as it will speed up jabbing, especially important for the bloc which has been struggling to fasten the inoculations.

Also on the risk-positive side, negative for the US dollar, were comments from the US Federal Reserve (Fed) policymakers who rejected the reflection fears and idea of dialing back the easy money policies, except for Dallas Fed President Robert Kaplan. It should be noted that Kaplan’s non-voting-member status should have dimmed the importance of his push for tapering.

Elsewhere, the US extends curb on investments in Chinese firms, introduced by ex-President Donald Trump, while joining the bloc in criticizing Beijing’s trade/political roles. Also on the same lines are comments from the European Central Bank (ECB) top supervisor Andrea Enria who said, “40% of eurozone banks are not complying with the ECB's expectations on bad loans.”

Amid these plays, stock futures are mildly bid while the US 10-year Treasury yields wobble around 1.57% by the press time.

Although April’s US Nonfarm Payrolls (NFP) become the key for the EUR/USD traders, Germany’s trade and industrial production details for March, as well as ECB President Christine Lagarde’s speech, could offer intermediate clues. While an expected pick-up in German numbers could help EUR/USD stay positive, ECB’s Lagarde need not highlight the risk for the region’s economy, mainly from Brexit and the coronavirus (COVID-19) to keep the markets hopeful.

Read: US April Nonfarm Payrolls Preview: Leading indicators point to another strong NFP

Technical analysis

Sustained trading beyond one-week-old falling trend line and 50-day EMA, respectively around 1.2010 and 1.1995, keeps EUR/USD bulls well-directed towards the 1.2100 threshold. However, the 1.2080 may act as an intermediate halt whereas the yearly top of 1.2149 may lure buyers afterward.

Additional important levels

Overview
Today last price 1.2068
Today Daily Change 0.0003
Today Daily Change % 0.02%
Today daily open 1.2065
 
Trends
Daily SMA20 1.2025
Daily SMA50 1.1946
Daily SMA100 1.2049
Daily SMA200 1.1948
 
Levels
Previous Daily High 1.2072
Previous Daily Low 1.1993
Previous Weekly High 1.215
Previous Weekly Low 1.2017
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2042
Daily Fibonacci 61.8% 1.2023
Daily Pivot Point S1 1.2015
Daily Pivot Point S2 1.1965
Daily Pivot Point S3 1.1937
Daily Pivot Point R1 1.2094
Daily Pivot Point R2 1.2122
Daily Pivot Point R3 1.2172

 

 

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