EUR/USD grinding lower to 1.3630

By FXstreet.com | June 06, 2014 AAA

FXStreet (Edinburgh) - The shared currency is extending its downward path on Friday albeit at a snail-pace, with the EUR/USD now gyrating around 1.3630/25.

EUR/USD focus on Payrolls

The pair is prolonging its resilience above the 1.3600 handle, although giving away yesterday’s gains after sharply bouncing off the vicinity of 1.3700 to close the day around 1.3660. Market participants quickly digested the easing-measures package from the ECB, lifting spot to post multi-day highs and print a key day reversal at the same time. Looking ahead, the US Payrolls is the next big event, with consensus expecting the US economy to have added 218K jobs in May. In the opinion of Tim Riddell, Head of Global Markets Research at ANZ, “Although weekly momentum has turned notably towards a period of pullbacks, daily momentum is highlighting the risk of a corrective squeeze. This again underscores the likely corrective nature of price action into H2 2014”.

EUR/USD levels to watch

As of writing the pair is losing 0.21% at 1.3630 and a break below 1.3503 (low Jun.5) would open the door to 1.3482 (low Feb.6) and then 1.3477 (2014 low Feb.3). On the flip side, the initial hurdle aligns at 1.3666 (21-d MA) followed by 1.3670 (high Jun.5) and then 1.3688 (high May 22).

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