EURUSD is benefitting from the general dollar weakness we’re seeing in today’s session, ahead of the US NFP report later. The currency pair is up by roughly 0.11% as it trades at 1.0845. Can it extend its rally?
Due at 1:30 pm GMT, the official US government employment figures is expected to show that 22 million jobs were lost in April. A worse-than-expected figure could weaken the US dollar and send EURUSD higher. On the other hand, a positive number could send EURUSD lower.
Before this much-anticipated report, ECB President Lagarde is scheduled to speak at 12:00 pm GMT. There has been some rift between the ECB and Germany lately. And so, remarks of deepening conflict between these two key players in the euro zone could be bearish for EURUSD.
On the 4-hour time frame, it can be seen that EURUSD looks to be trading within a range. Recently, the currency pair bounced off support at 1.0770. It is currently testing resistance at the 100 SMA, however, if there are enough buyers in the market, EURUSD could soon find its way to the top of the channel at 1.0990.
On the contrary, reversal candlesticks around 1.0850 could mean that there are still sellers left in the market. EURUSD may then retest its recent lows at 1.0770. If support at that level does not hold, the next floor could be at 1.0726 where the currency pair bottomed on April 24.