The Euro stands at the front foot in early Friday’s trading and extends recovery from previous day’s 2 1/2 week low at 1.1309.
Recovery probes above 1.1400 barrier, marking 50% retracement of Wednesday’s over 1% fall and keeping near-term focus at the upside, as momentum on daily chart turns north and created bull-cross and MA’s turning to bullish setup.
Strong barrier at 1.1444 (Fibo 38.2% of 1.1815/1.1215) which was cracked several times but without clear break higher, is coming under pressure and sustained break would generate bullish signal for retest of recent highs at 1.1485/95 zone and daily cloud top at 1.1515 in extension.
Solid supports at 1.1379/75 (converging 20/55SMA’s which created bull-cross) are expected to hold and guard lower pivot at 1.1363 (daily cloud base), loss of which would be bearish.
Markets remain highly volatile and awaiting today’s key events which start with German Services PMI and labor data, followed by US NFP and speech of Fed chief Powell.
Positive signal came from upbeat US private sector data (ADP report showed 271K new jobs in Dec vs consensus for 179K) which could indicate possible surprise in today’s Non-Farm Payrolls report (Dec 178K f/c vs Nov 155K), however Dec AHE is expected to ease (3.0% f/c vs 3.1% prev) which could diminish positive impact from expected strong NFP data.
Res: 1.1416, 1.1444, 1.1477, 1.1495
Sup: 1.1383, 1.1375, 1.1363, 1.1309
