The pair regains traction and rises above 108 handle in European trading on Friday, after Wednesday’s hammer and Thursday’s tight Doji signaled that pullback from 108.53 is running out of steam. Studies on 4-hr chart support fresh upside, but dailies lack momentum for more significant advance that struggles to clear 20DMA (108.00) and stays away from pivotal falling 30SMA (108.24). All eyes are on US jobs data with several scenarios being on the table. Combination of strong NFP and earnings data (160K+ NFP and 0.3% AHE) is needed to lift dollar for probe above key barriers at 108.53 (1 July high) and 108.80/92 (11 June high/Fibo 38.2% of 112.40/106.78) that would generate strong bullish signal. Downbeat releases of both indicators would deflate dollar and risk extension towards key support at 106.78 (25 June low), with bearish signals also expected on weak NFP and strong earnings.
Res: 108.10, 108.24, 108.53, 108.80
Sup: 107.83, 107.53, 107.10, 106.78
