- EUR/USD advances marginally to the 1.1850/60 band on Friday.
- German Factory Orders expanded nearly 3% MoM during July.
- US Non-farm Payrolls next of significance in the NA session.
EUR/USD is trading without a clear direction at the end of the week, managing to regain the mid-1.1800s after dropping and testing the 1.1790 region on Thursday.
EUR/USD now looks to US data
The usual pre-NFP lull is prevailing in the global markets, with the majority of assets following a side-lined theme and tight ranges at the end of the week.
EUR/USD appears to have met some decent contention in the 1.1790/85 band so far this week (September 3), always against the backdrop of the rebound in the greenback from +2-year peaks around 91.70 (September 1).
In the euro docket and earlier in the session, German Factory Orders extended the rebound in July, expanding at a monthly 2.8%, while the Construction PMI ticked higher to 48.0 for the month of August.
Later in the NA session, all the attention will be on the US Non-farm Payrolls during last month. Expectations among investors place the creation of jobs at around 1.4 million and the jobless rate below the 10%.
What to look for around EUR
EUR/USD broke above the multi-day rangebound theme last week and managed to test the area just above 1.20 the figure on Tuesday. However, bulls failed to extend the rally further north, sparking a leg lower to the 1.1790 so far instead. In the broader picture, the bearish view on the dollar continues to sustain the underlying constructive bias in the pair, all accompanied by the improved sentiment in the risk-associated universe, auspicious results from domestic fundamentals – which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis – as well as US-China positive headlines. Also lending wings to the momentum around the euro appear the deal on the European Recovery Fund – which helped putting political fears within the bloc to rest (for now) – and the solid position of the current account in the region. In addition, the speculative community has supported the bullish stance on the euro for yet another week (as per the latest CFTC positioning report).
EUR/USD levels to watch
At the moment, the pair is losing 0.02% at 1.1853 and a move above 1.2011 (2020 high Sep.1) would target 1.2032 (23.6% Fibo of the 2017-2018 rally) en route to 1.2413 (monthly high Apr.17 2018). On the other hand, the next support aligns at 1.1789 (weekly low Sep.3) seconded by 1.1754 (weekly low Aug.21) and finally 1.1695 (monthly low Aug.3).
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