EUR/USD around session highs near 1.1660, NFP eyed

• Spot testing once again the ‘neckline’ around 1.1660/70.
• Rangebound likely ahead of payrolls later in the session.
• US non-farm payrolls expected at 312K.

The single currency is clinging to its daily gains vs. the greenback, taking EUR/USD to the key resistance area in the 1.1660/70 band, ‘neckline’ of the H&S pattern seen since late July.

EUR/USD focus on payrolls

Spot keeps the choppy performance so far this week, looking to close the first week with gains after two consecutive declines.

Headlines and events from the euro area stayed pretty much muted throughout the week, whereas the US docket and headlines from the US political scenario have been mostly driving the sentiment around spot.

In fact, the greenback remained on the defensive most of the week as market participants keep digesting the appointment of Jerome Powell as the next Fed Chairman when Janet Yellen finishes her term in February. Still in the US, the greenback appeared somewhat disappointed after Republicans unveiled the tax reform plans.

In the data space, US non-farm payrolls for the month of October will be the salient point today. Consensus among investors sees the economy adding more than 300K jobs during last month, while the jobless rate is expected at 4.2%.

EUR/USD levels to watch

At the moment, the pair is up 0.01% at 1.1659 facing the next up barrier at 1.1682 (10-day sma) seconded by 1.1743 (21-day sma) and then 1.1837 (high Oct.26). On the flip side, a break below 1.1575 (low Oct.27) would target 1.1448 (high Jun.30) en route to 1.1268 (200-day sma). Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important resistance zone between 1.1690 and 1.1703, where coincide the 10-day sma, recent highs and pivot point.