FXStreet (Edinburgh) – The European currency is now looking to consolidate in the area of daily highs vs. the dollar, with EUR/USD gyrating around 1.0870/60 so far.

EUR/USD firmer ahead of Payrolls

Spot is navigating 3-day highs after bottoming out in the 1.0700 neighbourhood on Tuesday, in response to a solid start of the year for the greenback. However, the Chinese-led sell-off in domestic and global equity markets has prompted a resurgence of the risk aversion, benefiting the common currency and lifting the pair to current levels.

Ahead in the week, US Non-farm Payrolls are due tomorrow, with consensus expecting the economy to have created 200K jobs during December.

EUR/USD relevant levels

At the moment the pair is advancing 0.60% at 1.0852 and a breakout of 1.0936 (76.4% Fibo of 1.0538-1.1059) would target 1.1045 (200-day sma) en route to 1.1146 (5-month downtrend). On the other hand, the immediate support lines up at 1.0700 (psychological level) followed by 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16).

The European currency is now looking to consolidate in the area of daily highs vs. the dollar, with EUR/USD gyrating around 1.0870/60 so far…

(Market News Provided by FXstreet)

By FXOpen