Euro advances on fresh risk mode, eyes US jobs data for further positive signals
The Euro rose overnight, driven by fresh risk appetite following strong ADP jobs data revision, better than expected US manufacturing PMI and renewed hopes for potential Covid-19 vaccine.
Fresh strength broke above 20DMA (1.1265) which capped the action in past five days and attempts to emerge above five-day congestion (1.1184/1.1287).
Bulls pressure pivotal barrier at 1.1295 (50% retracement of 1.1422/1.1168 / bear-trendline drawn off 1.1422 high) break of which would generate bullish signal.
Daily 5/10/20MA’s turned to bullish setup and momentum emerges into positive territory, supporting the advance.
US NFP data is eyed as key event, with expectations for record US jobs growth in June, unemployment is expected to 12.3% from 13.3% in May that would further boost risk sentiment.
US weekly jobless claims are expected to slip to 1.35M from 1.48M previous week and continuous claims are seen declining to 19M that would add to positive signals, however, weakness in US labor market persists, as employment is still about 16 million jobs below the levels before coronavirus crisis.
Support levels lay at: 1.1265 (20DMA), 1.1228 (broken Fibo 23.6% of 1.1422/1.1168) and 1.1204 (30DMA), guarding key points at 1.1175/68 (Fibo 38.2% of 1.0774/1.1422 / 19 June trough).
Violation of resistances at 1.1325 (Fibo 61.8% of 1.1422/1.1168) and 1.1348 (23 June spike high) would spark 1.1400+ gains.
Res: 1.1300; 1.1325; 1.1348; 1.1362
Sup: 1.1265; 1.1246; 1.1228; 1.1204