EUR/USD challenges 200-DMA in early Europe, NFP in spotlight

The EUR/USD pair extends its bullish momentum into Europe, now trading within a striking distance of 200-DMA located at 1.1090 amid re-emergence of risk-off trades.

EUR/USD on a gradual recovery path

Currently, EUR/USD now trades +0.17% higher at fresh session highs of 1.1084, extending recovery from near 1.1050 region. The main currency pair keeps pushing higher largely in response to ongoing correction in the US dollar against its major peers, while deteriorating risk conditions amid negative Asian equities boost the funding currency status of the EUR.

Markets now await the sentiment on the European markets for further impetus on the shared currency ahead of the German trade balance data, while all eyes remain on the US NFP report for next direction on the major.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1090/94 (200 & 5-DMA). A break beyond the last, doors will open for a test of 1.1129/50 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1029/22 (Jul 6 & Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.