EUR/USD extends gains, 1.07 in the cross hairs

The euro continued its uninterrupted rise vs. the greenback in the last session of the week amid ECB speculations, and the EUR/USD touched its highest since Feb. 9 at 1.0686. At the moment the pair is up 1% at 1.0680.

A rate hike before QE ends?

European Central Bank policymakers considered the question of whether interest rates could rise before their bond-buying program comes to an end, according to people familiar with the matter, as reported by Bloomberg. 

ECB said to have discussed whether rates can rise before QE ends - BBG

DXY under pressure despite solid jobs data

Following Wednesday's positive ADP report, markets have been pricing a solid NFP reading, and they seemed to have sold the fact after buying the rumor. According to analysts at Danske Bank, the jobs report removes the last obstacle for a Fed hike on Wednesday and a hike is the consensus among analysts and fully priced in by markets. The CME Group FedWatch Tool shows that the March hike probability is at 93%.

Non-farm Payrolls rose to 235K in February

Technical outlook

Supports for the EUR/USD could be found at 1.0645 (50-DMA), followed by 1.0615 (100-DMA) and 1.0578/80 (daily low/20-DMA). On the flip side, resistances are aligned at 1.0700/10 (psychological level/fib. 38.2% of Jan. - Feb. uptrend), 1.0770 (Jan. 23 high) and 1.0827 (Feb. 2 high).