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  • EUR/USD looks to add to Thursday’s gains near 1.0850.
  • German trade surplus shrunk to €12.8 billion in March.
  • US Non-farm Payrolls expected to drop by around 20 million jobs.

EUR/USD keeps the buying interest unchanged in the second half of the week, reclaiming the 1.0850 region following Thursday’s lows in sub-1.0800 zone.

EUR/USD is now focused on US NFP

EUR/USD is sticking to the positive ground so far on Friday, adding to gains recorded in the previous session against the backdrop of a better tone in the risk-associated complex.

In fact, positive headlines from the US-China trade conflict suggested that both parties could meet at some point in the very near term in order to resume the trade negotiations. The news lifted the spirits around the riskier assets and undermined the moderate rebound in the greenback, sponsoring the bounce off lows in spot afterwards.

Data wise, German trade surplus shrunk to €12.8 billion during March, with Exports contracting nearly 12% and Imports shrinking more than 5%. Moving forward, the centre of the debate is expected to gyrate around the publication of April’s Non-farm Payrolls and the Unemployment Rate in the US economy. It is worth recalling that forecasts are pointing to a loss of 20 million jobs during last month, while the jobless rate is likely to have increased beyond 14%.

What to look for around EUR

The euro appears to have met some decent contention in sub-1.0800 levels so far this week in a context of poor results from fundamentals in the region and a broad-based consolidation theme ahead of Friday’s US Payrolls. In the meantime, the attention in the Old Continent stays on the re-opening of some economies and the somewhat renewed optimism on the back of shrinking infected cases and deaths by the COVID-19, particularly in Spain and Italy.

EUR/USD levels to watch

At the moment, the pair is gaining 0.05% at 1.0836 and a breakout of 1.0950 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1027 (200-day SMA). On the other hand, the next down barrier emerges at 1.0766 (weekly low May 7) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).