EUR/USD off 5-week lows, heads back towards 1.1600 ahead of NFP

The EUR/USD pair is seen making minor recovery attempts from five-week lows at 1.1562, as the bulls appear to be rescued by some fresh US dollar selling heading into the US labor market report due later today at 1230 GMT.

The US dollar quickly faded an uptick to fresh two-week highs of 95.37 reached against a basket of six major currencies, as the bulls put a brake expectant of disappointing US payrolls and wage growth numbers.

The US economy is estimated to have added 190k new jobs last month versus 213k job additions seen in June. The average hourly earnings are expected to remain unchanged at 2.7% in the reported month.

Meanwhile, the EUR/USD rebound on track, despite below estimates Eurozone retail sales data while weaker Treasury yields also add to the renewed upside in the spot. The Eurozone retail sales data steadied at 0.3% in June versus 0.4% expected.

EUR/USD Technical Levels

Slobodan Drvenica at Windsor Brokers noted: “Thursday’s close below triangle support line (1.1633) and Fibo support at 1.1616 (61.8% of 1.1508/1.1790) were strong bearish signals.
Bearish studies on daily chart (MA’s in full bearish setup; growing negative momentum and strong pressure from thick daily cloud) support bearish scenario which could result in re-visiting key short-term support at 1.1508 (21 June low). Meanwhile, the pair may move higher, in positioning ahead of key data, with broken triangle support line marking strong barrier, where upticks are expected to face strong headwinds.

Res: 1.1616; 1.1633; 1.1662; 1.1675

Sup: 1.1574; 1.1527; 1.1508; 1.1447.”