EUR/USD remains firm near 1.0860

FXStreet (Edinburgh) - The European currency is now looking to consolidate in the area of daily highs vs. the dollar, with EUR/USD gyrating around 1.0870/60 so far.

EUR/USD firmer ahead of Payrolls

Spot is navigating 3-day highs after bottoming out in the 1.0700 neighbourhood on Tuesday, in response to a solid start of the year for the greenback. However, the Chinese-led sell-off in domestic and global equity markets has prompted a resurgence of the risk aversion, benefiting the common currency and lifting the pair to current levels.

Ahead in the week, US Non-farm Payrolls are due tomorrow, with consensus expecting the economy to have created 200K jobs during December.

EUR/USD relevant levels

At the moment the pair is advancing 0.60% at 1.0852 and a breakout of 1.0936 (76.4% Fibo of 1.0538-1.1059) would target 1.1045 (200-day sma) en route to 1.1146 (5-month downtrend). On the other hand, the immediate support lines up at 1.0700 (psychological level) followed by 1.0538 (low Dec.3) and finally 1.0456 (2015 low Mar.16).

USD/JPY rises back above 118.00 as Wall Street trim losses

USD/JPY moved further away from 4-month lows that reached earlier at 117.31 and hit levels on top of 118.00, trimming losses as stocks in Wall Street also moved off daily lows.
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USD/JPY: Next sustained move will be lower - TDS

According to analysts from TDS, USD/JPY could decline initially to 116.18, with room for an extension toward the 110 area.
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