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4 Sep 2015
EUR/USD fades a spike to 1.1160, back around 1.1140
FXStreet (Mumbai) - The EUR/USD pair keeps the bid tone intact as we progress towards the European afternoon, clinging to 1.11 barrier as markets brace for the another wave of volatility expected to be triggered by the highly anticipated US labour market report.
EUR/USD deflates from 1.1160
The EUR/USD pair trades 0.19% higher at 1.1145, finding it hard to extend beyond 1.1160 levels. The main currency pair extends its tepid recovery from two-week trough and remains bid amid unwinding of positions on the back of falling European equities.
Markets remain calm amid an eventless EUR calendar, with all eyes now set on the US non-farm payrolls. The figure is even more important this time around as it is likely to provide a hint to the Fed rate hike intentions at its Sept meeting.
Meanwhile, Chris Weston from IG noted, "Interest rate markets are currently pricing in a 30% probability of a September hike in interest rates from the Federal Reserve, 42% for October and 57% for December."
On Thursday, EUR/USD suffered heavy losses mainly amid the comments of European Central Bank (ECB) President Mario Draghi during the press conference following the ECB rate decision.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1188 (Aug 14 High), above which gains could be extended to 1.1213 (Aug 12 High) levels. On the flip side, support is seen at 1.1086 (Sept 3 Low) below which it could extend losses to 1.1023 (Aug 12 Low) levels.
EUR/USD deflates from 1.1160
The EUR/USD pair trades 0.19% higher at 1.1145, finding it hard to extend beyond 1.1160 levels. The main currency pair extends its tepid recovery from two-week trough and remains bid amid unwinding of positions on the back of falling European equities.
Markets remain calm amid an eventless EUR calendar, with all eyes now set on the US non-farm payrolls. The figure is even more important this time around as it is likely to provide a hint to the Fed rate hike intentions at its Sept meeting.
Meanwhile, Chris Weston from IG noted, "Interest rate markets are currently pricing in a 30% probability of a September hike in interest rates from the Federal Reserve, 42% for October and 57% for December."
On Thursday, EUR/USD suffered heavy losses mainly amid the comments of European Central Bank (ECB) President Mario Draghi during the press conference following the ECB rate decision.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1188 (Aug 14 High), above which gains could be extended to 1.1213 (Aug 12 High) levels. On the flip side, support is seen at 1.1086 (Sept 3 Low) below which it could extend losses to 1.1023 (Aug 12 Low) levels.