EUR/USD a tad weaker around 1.1100, NFP eyed

EUR/USD has retreated from recent highs in the 1.1120/25 band, now returning to the 1.1100 neighbourhood ahead of key US releases.

EUR/USD now looks to Payrolls

The upside momentum around the pair seems to have mitigated somewhat, finding quite strong resistance around August/September lows in the 1.1120 area for the time being.

In addition, the greenback is recovering the smile so far, looking to extend the rebound from recent lows in the vicinity of the 97.00 handle when tracked by the US Dollar Index (DXY).

Later in the session, USD will take centre stage in light of the release of US October’s Non-farm Payrolls. Market consensus expects the economy to have created more than 170K jobs during last month, keeping the buoyancy of the labour market intact.

Further events across the pond will include speeches by Atlanta Fed D.Lockhart (2018 voter, centrist), L.Brainard (permanent voter, dovish), Dallas Fed R. Kaplan (2017 voter, neutral), Minneapolis Fed N.Kashkari (2017 voter, neutral) and S.Fischer (permanent voter, hawkish).

Views of FOMC governors are expected to grow in importance as we get closer to the December meting, where market participants see the Federal Reserve resuming its tightening cycle.

EUR/USD levels to watch

The pair is now down 0.04% at 1.1101 with the immediate support at 1.0850 (low Oct.25) followed by 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the flip side, a breakout of 1.1128 (high Nov.3) would target 1.1187 (200-day sma) and then 1.1195 (6-month resistance line).

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