EUR/USD: waiting for NFP
Ahead of the US NFP EUR/USD is trading below the $1.2900 mark, extending the yesterday’s ECB-caused drop from the levels above $1.3000. Adoption of a dovish forward guidance sparked a sharp drop of the euro to $1.2880.
Increased divergence between the ECB and US Fed’s monetary policy is widening, increasing prospects for a further decline of the pair. Our next bearish target lies at $1.2850 (2012-2013 support). A break below this level will pave the ground for further losses. The next support is seen at $1.2750, $1.2700 and $1.2600. Key resistance is now seen at $1.3000.
On Friday all eyes are on the US NFP and unemployment rate: if the figures come better than expected, EUR/USD will immediately extend the downside.
Chart. Daily EUR/USD