EUR/USD treading water below 1.1700 ahead of Payrolls

• The pair alternates gains with losses below the 1.1700 handle.
• Germany final manufacturing PMI came in on a firm note in May.
• US labour market report, ISM manufacturing next on tap.

The demand for the single currency stays subdued at the end of the week, taking EUR/USD to a consolidative theme at/below 1.1700 the figure.

EUR/USD now looks to NFP

The pair is looking to extend the rebound from Tuesday’s 11-month lows in the 1.1500 neighbourhood, although the upside seems to have met a tough resistance in the 1.1720/30 band, where converge weekly tops and December’s 2017 low.

The lack of further traction in spot comes along a pick up in the sentiment around the buck, all amidst renewed US sanctions against North American and European trade partners and rising US yields.

In addition, traders remain cautious on EUR in light of the recent developments in Italy and the likeliness of a change of government in Spain.

Looking ahead, US Non-farm Payrolls for the month of May will drive the sentiment along with the publication of the ISM Manufacturing.

EUR/USD levels to watch

At the moment, the pair is losing 0.08% at 1.1683 facing the immediate support at 1.1642 (low May 31) seconded by 1.1511 (2018 low May 29) and finally 1.1479 (low Jul.20 2017). On the upside, a breakout of 1.1724 (high May 31) would target 1.1782 (21-day sma) en route to 1.1830 (high May 22).