The Euro was flat in Asia on Friday and holding just above 1.1200 handle, awaiting key release of the day, US Non-Farm payrolls data.
Forecast for NFP shows that US economy created 185.000 new jobs in May, which is below last month’s 211.000, however, numbers are seen solid and release at/above forecasted level would further strengthen expectations of US rate hike in June.
The notion is supported by upbeat US private sector jobs report that was released on Thursday and showed 253.000 jobs added in private sector in May, compared to 185.000 forecasted.
Overall bullish structure favors further upside and final break above 2017 high at 1.1268 for resumption of broader uptrend which was paused for 1.1268/1.1109 consolidation.
Near-term action remains supported by 10SMA (1.1204) which keeps immediate focus at the upside, with break above 1.1268 to open next targets at 1.1300/13.
However, extended daily studies keep in play the risk of fresh weakness on repeated rejection under 1.1286 pivot.
Such scenario requires firm break of 1.1200 support, to generate stronger bearish signal and expose key near-term support at 1.1100 (consolidation low / Fibo 38.2% of 1.0820/1.1268 upleg / rising 20SMA), loss of which would signal double-top and reversal.
Initial resistance lies at 1.1227 (hourly cloud top), ahead of 1.1256/68 pivots.
Res: 1.1227, 1.1256, 1.1268, 1.1300
Sup: 1.1204, 1.1188, 1.1160, 1.1100
