The Euro closed relatively unchanged yesterday as mixed EU economic data kept the lid on the Single currency. However, market sentiment remains bullish, as traders will be looking to take back control in today’s session after the US NFP release. The data is expected to show the economy added only 84,000 jobs in October having added 136,000 jobs in September. In addition, the unemployment rate is expected to rise by 0.1% to 3.6%. Therefore, the greenback will likely face strong selling pressure, boosting the Common currency towards 1.12. Additionally, a big drop in earnings will likely put pressure on the Fed to go for another rate cut in December or January.
The Single currency bulls retested the October highs, however price found resistance in the short-term, pulling the pair back towards the 1.1130 support level. Nevertheless, the bulls remain resilient, as they are once again challenging the recent highs. If 1.1180 is broken, then 1.12 and possibly further will be the buyers’ next target. The bears, on the other hand, are currently under water as they look to push price below the 50-day moving average once again, to halt this bullish domination.
Support: 1.1150 / 1.1130
Resistance: 1.1180 / 1.12