EUR/USD struggling to break through 1.06 handle, NFP in focus

Haresh Menghani FXStreet

The EUR/USD pair maintained its bid tone for the second straight session, albeit continued with its struggle to decisively break through the 1.0600 handle.

Currently trading around 1.0590 region, the better-than-expected German trade balance data provided little impetus and the pair held below previous session's ECB-led swing highs. German trade surplus came-in slightly above estimates, at €18.5 billion for January vs €18.0 billion expected. The positive data, however, seems to have been negated by a downward revision of previous month's surplus, now standing at €18.7 billion as against €24.0 billion reported earlier.

Moreover, continuous up-surge in the US treasury bond yields, against the backdrop of an imminent Fed rate-hike action next week, also seems to collaborate towards capping any further up-move for the major.

Meanwhile, Thursday's hawkish comments from the ECB President Mario Draghi, hinting towards a shift in the bank’s stance away from offering further stimulus, helped the pair to hold in positive territory through early European session.

Investors on Friday will remain focused on the keenly watched US monthly jobs report. After Wednesday's stellar ADP report, market participants now seem to anticipate the official NFP data to print a solid headline number, with consensus estimates point to an addition of 190K new jobs for February.

Technical levels to watch

A follow through retracement below 1.0575 immediate support level is likely to get extended back towards 1.0540 intermediate support, below which the pair is likely to aim towards testing the key 1.0500 psychological mark.

On the upside, momentum above the 1.0600 handle is likely to confront resistance near 1.0625 level, which if cleared decisively has the potential to lift the pair beyond multi-week highs resistance near 1.0640 area, towards reclaiming 1.0700 round figure mark.

1. R3 1.0715
2. R2 1.0665
3. R1 1.0624
PP 1.0574
1. S1 1.0533
2. S2 1.0483
3. S3 1.0442

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.