EUR/USD trying to walk back previous day's losses as EU CPI, US NFP loom ahead for Friday

The EUR is holding well against early Thursday's market dump.
Action could be constrained ahead of Friday's EU inflation/US NFP double-header.

Joshua Gibson FXStreet

EUR/USD is trading into 1.1370 heading through the Pacific-Asia market session, lifting from Thursday's early low of 1.1307 thanks to a broad-market decline on renewed risk aversion, but the Euro is heading through the day's action on a notably bullish note, lifting through thin Asian trading.

Thursday brings a smattering of low-tier economic data for the European Union, but most traders will be buckling down for Friday's mega-showing, with critical EU inflation figures due at 10:00 GMT, where investors will be hoping that annualized EU inflation manages to hold steady at the 1% level, while forecasts are also calling for a slide in PPI readings, with the annualized number for December expected to decline from 4.9% to 4.1%. Also on Friday will be another round of the US' Non-Farm Payrolls, and markets will likely continue twisting on thinned-out volumes ahead of the densely-packed Friday showing.

EUR/USD Levels to watch

The Euro-Dollar pairing still sees plenty of bearish technical readings in the charts after Wednesday's 170-pip decline from 1.1496, and as FXStreet's own Valeria Bednarik noted:

The pair trades a handful of pips above the mentioned low ahead of the Asian opening, bearish according to readings in the 4 hours chart, as the price has fallen below all of its moving averages, while technical indicators barely decelerated their declines once nearing oversold readings. The pair has some relevant daily lows around 1.1310, now the immediate support, with a break below it opening doors for a re-test of 2018 low at 1.1215.

Support levels: 1.1310 1.1275 1.1240
Resistance levels: 1.1345 1.1390 1.1425

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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