Key Insights
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EUR/USD receives support near yearly lows.
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Today, traders will focus on Non Farm Payrolls and Unemployment Rate reports from the U.S.
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A move above 1.0525 will push EUR/USD back to the resistance at 1.0550.
Euro Is Mostly Flat Against U.S. Dollar
EUR/USD is currently trying to settle back above 1.0525, while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle above the 104 level but lost momentum and pulled back towards 103.80. In case the U.S. Dollar Index settles below this level, it will head towards the support level at 103.60, which will be bullish for EUR/USD.
Today, foreign exchange market traders will focus on the economic data from the U.S. Non Farm Payrolls report is expected to show that the economy added 391,000 jobs in April. Unemployment Rate is expected to decline from 3.6% in March to 3.5% in April.
These job market reports will have a material impact on currency dynamics. The market is extremely sensitive to any changes in Fed policy outlook, and the situation in the job market plays a key role in Fed decision making.
EUR/USD is testing the resistance level at 1.0525. In case this test is successful, EUR/USD will get to another test of the next resistance level, which is located at 1.0550.
A move above the resistance at 1.0550 will push EUR/USD towards the next resistance at 1.0580. In case EUR/USD manages to climb back above this level, it will head towards the resistance level at 1.0600.
On the support side, the nearest support level for EUR/USD is located at 1.0500. If EUR/USD moves below this level, it will head towards the next support at 1.0485.
RSI remains in the moderate territory, and there is enough room to gain additional downside momentum in case the right catalysts emerge. If EUR/USD declines below 1.0485, it will head towards the support level at 1.0460.
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