The euro has established a recovery path and gas been trading with mostly bullish bias for a third week in a row. This comes amid some signs of USD rally exhaustion, as the greenback doesn’t already receive a strong boost from trade-war worries and the hawkish Fed.
The single currency rebound was fuelled these days by robust German data, with industrial orders and industrial production both came out much better than expected, which has partly alleviated concerns over the state of the euro area economy. The recent optimistic signals from the ECB added to the bullish pressure either.
Now, the market is focused on the upcoming US employment report. The data could attract USD buying interest should the numbers come out positive and confirm that the labor market remains tight and healthy. So, EURUSD could continue its corrective rebound from 2018 lows at 1.15 if only the numbers disappoint. In this case, the pair will challenge the 1.1720 intermediate resistances and may push to 1.1750, where profit-taking could take place.
By Helen Rush
Senior Analyst at Capital Markets