Euro remains constructive ahead of US labor data
The Euro started to gain traction in early US trading on Thursday, following a limited dip from new two-month high on Wednesday.
Overall picture remains bullish as the single currency benefited from weaker dollar, after downbeat US data pointed to cooling labor market and growing fears of recession risk, with immediate bullish bias to remain intact as long as the price stays above rising 10DMA (1.0865).
All eyes are on Friday’s release of US labor data, which is expected to provide fresh direction signals for dollar and subsequently impact Euro’s performance.
The greenback is likely to come under increased pressure if labor figures fall below expectations, particularly NFP and earnings.
This scenario will be positive for euro and would spark fresh bullish acceleration towards targets at 1.1000/32 (psychological / 2023 high).
Conversely, stronger than expected labor numbers in March would lift the greenback and deflate euro.
Res: 1.0973; 1.1000; 1.1032; 1.1100
Sup: 1.0865; 1.0835; 1.0789; 1.0774