EUR/USD retreats to 1.0960 as USD recovers ahead of NFP

After having peaking at six-month tops of 1.0990 in late Asia, the EUR/USD pair is on a corrective mode, now eyeing a test of 1.0950 support.

The spot met fresh supply post-European open, as the European traders resorted to profit-booking on their EUR longs after yesterday’s massive rally, with attention now turning towards the US employment data slated for release later in the NA session.

Moreover, a minor-bounce staged by the greenback versus its main competitors also adds to the downslide in EUR/USD. The USD index trades near daily tops of 99.75, up +0.12% on the day, recovering from multi-month troughs reached near 99.60 levels.

Furthermore, the Euro tracks the German bund yields lower, knocking-off the rate towards the mid-point of 1.09 handle. The German 10-year bund yields drop -3.30% to 0.372% so far.

Meanwhile, markets paid little heed to upbeat Eurozone retail PMI for April, as the main market moving event for the spot today remains the US payrolls data.

EUR/USD Technical Levels

Valeria, Chief Analyst at FXStreet explains, “The 4 hours chart shows that technical indicators are retreating within positive territory, but also that the 20 SMA advanced below the current level, currently reinforcing the mentioned support area. Below it, the next intraday supports come at 1.0890, 1.0850 and 1.0820. Seems unlikely the pair will reach this last even with a strong report but if it does, and break lower, there's scope for further slides down to 1.0730, where the pair will fill the gap left a couple of weeks ago.”

“To the upside, 1.1000 is the most relevant level, as above it, the rally could extend up to 1.1260 next week. Intraday resistances above it stand at 1.1045, 1.1080 and 1.1115”, Valeria adds.