EUR/USD: Will it regain 1.2000 on US payrolls?

The EUR/USD pair managed to keep 1.19 handle in the Asian session, after the rebound ran into resistances located shy of 5-DMA at 1.1930, as the bulls take a breather heading into the US jobs data release due on the cards later today.

EUR/USD bounces-off 4-day lows                                             

The spot is on a minor retreat so far this session, as the recovery from near 1.1820 region lost steam amid stalled selling seen in the US dollar against its major peers.

The greenback is seen consolidating yesterday’s sharp sell-off, triggered by month-end flows and dwindling Dec Fed rate hike bets, after the US macro news failed to impress and knocked-off Treasury yields lower.

Earlier on Thursday, the Euro tumbled to a four-day lows of 1.1823 versus its American counterpart, after the latest reports hit the wires citing that concerns are mounting amongst the ECB policymakers on the recent Euro appreciation.

Looking ahead, the pair could resume its overnight rebound and head back towards 1.2000 levels, as markets expect the US NFP and average hourly wages data to disappoint. US: Payrolls and average hourly earnings to miss estimates – Goldman Sachs

In the meantime, the pair will take cues from the Euro area final manufacturing PMI reports for fresh incentives.

EUR/USD Technical Set-up  

Valeria Bednarik, Chief Analyst at FXStreet, explained, "in the 4 hours chart, the price remains below a bearish 20 SMA, currently around 1.1945, while the Momentum indicator keeps heading south near oversold readings, as the RSI indicator consolidates around 45. Below the daily low, the pair has a stronger support in the 1.1780/90 region that if it's broken, would result in a steeper decline down towards the 1.1700 level, where the pair has a daily ascendant trend line coming from early April low of 1.0603.”