EUR/USD extends post-ECB gains to 1.0620, NFP eyed

The EUR/USD pair is seen trying hard to extend previous gains, now hovering near daily highs reached at 1.0619 in the last hour.

The EUR shorts unwinding extends for the second straight session as markets resort to repositioning ahead of the highly influential US payrolls data, which is expected to add to next week’s Fed rate hike chances.

The spot also continues to benefit from a hawkish tilt seen in the ECB’s monetary policy outcome, after the central bank hinted at the beginning of the end of its massive monetary stimulus yesterday.

 Markets largely ignored downbeat German trade balance data, as the focus solely remains on the US labor market report, with the headline January NFP figures expected to come in 200k, while the average hourly earnings are seen rising   by 0.3% m/m and 2.8% y/y in February.

EUR/USD Technical Levels

Nenad Kerkez, Senior Lecturer/Market Analyst at Admiral Markets, noted, “Technically the rallies on EUR/USD are still sold into and depending on NFP we might see a fade on rallies close to 1.0675. Currently the pair is trapped within the rectangle range and we can clearly see 3 trend lines that have formed Xcross ™ at important levels. Today's NFP levels to watch for are: 1.0675 (H5, ATR overshot), 1.0642 (ATR top), 1.0600 (H3, Xcross ™), 1.0572 (ATR, DPP, Xcross ™) and 1.0525 (L4, Xcross ™).”