EUR/USD fades a spike to 1.0770, awaits payrolls

After a brief period of downside consolidation in the overnight trades, the EUR/USD pair broke to the upside, although failed to resist the upmove and now drops back towards the familiar range near 5-DMA located at 1.0756.

EUR/USD: Eyes on NFP

Currently, the spot trades modestly flat at 1.0757, flirting with two-day lows reached yesterday at 1.0752. The main currency pair surrendered gains and now regains the offers, as any upside attempt remains limited amid higher US treasury yields, which continue to buoy the sentiment around the buck.

In the day ahead, the shared currency is expected to remain under pressure as the greenback could extend its upward correction, as markets seek to unwind USD shorts, backed by the Trump trades, ahead of the highly-influential US NFP data. The payrolls data is likely to show 170k job additions in Jan, while the average hourly earnings are seen higher last month.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0814 (8-week high). A break beyond the last, doors will open for a test of 1.0850 (psychological levels) and from there to 1.0875 (Dec tops). On the flip side, the immediate support is placed at 1.0736 (10-DMA) below which 1.0708/02 (100 & 20-DMA) and 1.0681 (Jan 31 low) could be tested.