EUR/USD trims gains, still above 1.1400 ahead of NFP

The single currency is now marginally down vs. the greenback, with EUR/USD gravitating around 1.1420 after testing lows in the 1.1410/05 band.

EUR/USD sidelined pre-payrolls

The pair is looking to extend is positive streak this week after retaking the critical 1.1400 handle on Thursday following hawkish ECB minutes. In fact, the central bank confirmed its upbeat assessment on the economic recovery of the bloc and emphasized the positive inflation outlook in the longer run. Further support to the uspide came from the German money markets, where the 10-year benchmark clinched the 0.58% area, levels lat seen in January 2016.

The up move in EUR/USD stays also underpinned by a continuation of the bullish signs in EUR futures markets, which leave the door open for a new visit to the area of 2017 tops in the mid-1.1400s.

In addition, poor prints from the ADP report showed the US private sector adding fewer jobs than initially estimated, weighing on the sentiment around the buck and relegating the US Dollar Index (DXY) to the lower end of the range around 95.70.

In the meantime, spot is struggling to close its second consecutive week with gains, while the upcoming results from US non-farm payrolls should be key to decide the final direction for the weekly close.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.1421 facing the immediate support at 1.1367 (10-day sma) followed by 1.1311 (low Jul.5) and finally 1.1269 (21-day sma). On the flip side, a breakout of 1.1448 (2017 high Jun.30) would target 1.1466 (high Apr.12 2016) en route to 1.1616 (2016 tops May 3).

Additionally, the daily RSI (14) has rebounded to 65 and the MACD line stays within the bullish territory albeit closer to the signal line.