EUR/USD pare losses but remained below 1.1200 handle, NFP in focus

Having posted a session low at 1.1174, the EUR/USD pair has managed to recover majority of its lost ground but remained below 1.1200 handle ahead of the much awaited NFP data. 

Earlier on Friday, the pair trimmed some of its Thursday's disappointing US ISM manufacturing PMI-led gains as traders seemed to readjust their positions ahead of the keenly watched monthly jobs report from the US, which would be a major factor determining the Federal Reserve’s next monetary policy action in the near-term and provide impetus for the next leg of move for the greenback. 

The report is expected to show that US economy added 180k new jobs in August and the unemployment rate dipped to 4.8%. A surprisingly stronger report would increase the prospects of an eventual Fed rate-hike action and should trigger a sharp bullish spike for the greenback, which should further get extended in the near-term. 

From technical perspective, the pair has been oscillating within a broader trading range between 100-day SMA resistance and 200-day SMA support through the course of current trading week. Hence, it would be prudent to wait for a decisive break through the trading range before confirming the pair's near-term trajectory.

Technical levels to watch

From current levels, sustained move above 100-day SMA resistance near 1.1215 region should boost the pair immediately to 1.1260-65 intermediate barrier ahead of a strong resistance near 1.1300 handle. On the flip side, decisive break below 1.1180 seems to accelerate the slide immediately towards retesting the very important 200-day SMA strong support near 1.1120 region, which if broken would open room for continuation of the near-term depreciating move.