EUR/USD: Further upside still in play ahead of NFP?

After hitting fresh one-week highs at 1.1687 yesterday, the EUR/USD pair consolidated the gains in Asia, as the bulls take a breather and await the US payroll data for fresh direction.

EUR/USD looks to regain 1.17 handle

The spot is seen trying hard to extend the bid tone in another attempt to re-test weekly highs, as the technical set up on the daily sticks continue to remain supportive of further upside. The main currency pair is on a gradual recovery path from the ECB dovish taper decision induced three-month lows of 1.1575 levels, making higher lows on daily charts, which implies that the prices remain on track to test 1.17 handle.

More so, uncertainty over the US tax bill could continue to keep the greenback and Treasury yields on the back foot, which could push EUR/USD back towards 1.1685/1.1700 area. However, the US payrolls data due on the cards later today could stall the recent recovery mode in the major, as markets are expecting the headline NFP figures to show a solid rebound in October, coming in at 312k versus -33k last.

Meanwhile, the pair looks forward to the sentiment on the European markets for fresh impetus amid a data-empty EUR calendar today.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet, noted: “In the 4 hours chart, the pair is above a marginally bullish 20 SMA, but technical indicators continue lacking directional strength within neutral territory. Renewed buying interest beyond 1.1670 should lead to a steeper advance, particularly on a disappointing US employment report. The opposite scenario would need to see the pair breaking below 1.1600 to open doors for a steadier decline beyond October's low of 1.1575. Support levels: 1.1600 1.1575 1.1540 Resistance levels: 1.1670 1.1700 1.1745.”