The EUR/USD pair gradually extended its post-NFP descent in Asia and ran through fresh sellers at 5-DMA (1.1150), having spent last few hours below the last.
EUR/USD retreats from lows
Currently, EUR/USD trades -0.17% lower at 1.1136, recovering from fresh session lows printed at 1.1128 in the last hour. The main currency pair keeps losses and oscillates back and forth in a slim range heading into early Europe as the bid tone in the greenback against its major competitors on the back of the recent upbeat US jobs data, keeps the single currency pressured.
The US jobless rate fell to 4.9% in January, marking the lowest level since February 2008. While the average hourly earnings rose 0.5% in January, notably steeper than the 0.3% increase predicted.
In wake of Friday’s auspicious US employment data, the central banks’ monetary policy divergence is back on the investors’ mind and hence, weighs on the EUR/UD pair. Moreover, the renewed risk-on wave seen across the financial markets following the rebound in oil prices further diminishes the demand for the safe-currency euro.
Meanwhile, markets now await the German industrial production data for fresh cues on the major, while the sentiment on the equities and the oil price action will continue to drive currency markets.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance is seen at 1.1150 (psychological levels/ 5-DMA). A break beyond the last, doors will open for a test of 1.1200 (round number). On the flip side, the immediate support is placed at 1.1107/00 (Feb 5 Low) below which at 1.1068/65 (Feb 4 Low/ 1h 100-SMA) could be tested.
(Market News Provided by FXstreet)