EUR/USD deflates to 1.3870

FXStreet (Edinburgh) - The EUR/USD is closing the session around 1.3870/65 on Thursday, leaving behind intraday peaks in levels just shy of 1.3900 the figure.

EUR/USD focus on US Payrolls

The pair has been rejected from the vicinity of the 1.3900 handle during the European morning, retreating later to the current 1.3870/65 region. The next big risk event for the pair will come tomorrow with the US Non farm Payrolls (210K exp.) which could give some oxygen to the beleaguered USD. “The risk of the ECB undertaking QE have diminished, even in the face of yesterday’s soft flash CPI, the weakness was not enough to see the ECB unleash QE; in addition, the release of better than expected European credit dynamics combined with improving fundamentals are also helping to buy ECB some time”, commented Camilla Sutton, Chief FX Strategist at Scotiabank.

EUR/USD levels to consider

At the moment the pair is up 0.01% at 1.3866 with the next resistance at 1.3906 (high Apr.11) ahead of 1.3935 (high Mar.19) and then 1/3944 (high Mar.18). On the flip side, a breakdown of 1.3830 (10-d MA) would aim for 1.3800 (psychological level) and then 1.3771 (low Apr.30).

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