EUR/USD losses strength and retreats to the 1.1500 area

• EUR/USD ends negative 6-day streak and rises modestly.
• Ahead of NFP, the US dollar remains strong despite Thursday’s correction.

The EUR/USD pair rose on Thursday but not enough to remove the short-term pressure. The bias continues to point to the downside as the US dollar holds firm across the board.ç

The greenback pulled back against the yen, the euro and the pound but rose versus commodity and emerging market currencies on the back of risk aversion. The US dollar remains strong supported by monetary policy expectations as economic data continues to surpass expectations. On Friday, the official employment report will be released. Non-farm payrolls and income numbers could set the tone for the greenback.

The EUR/USD rebounded after falling to the lowest since August 20 at 1.1461. It peaked during the US session at 1.1542 but then eased, trimming gains. As of writing was trading at 1.1500/10 marginally higher from yesterday’s close, headed toward the first gain after falling during six trading days in a row.

Levels to watch

The decline found support at the strong 1.1460 area. A break of that level could trigger another leg lower in EUR/USD. Before that level, support is seen at 1.1490. To the upside, a recovery significantly above 1.1530 could remove part of the bearish pressure while a daily close on top of 1.1600 soon, could signal that a potential short-term bottom is in place.