The EUR/USD pair entered a consolidative phase on Thursday amid thin trading conditions while investors wait for the U.S. nonfarm payrolls report. At the time of writing, the EUR/USD pair is trading at the 1.0925 area, 0.23% above its opening price.
Most global markets will remain closed on Friday in observance of Good Friday. In the U.S., the stock market will remain closed, but the bond market will open for a shortened session. Still, the U.S. Bureau of Labor Statistics will release the March nonfarm payrolls data. The NFP report is expected to show the economy created 240,000 new jobs in March, following a 311,000 gain in February. At the same time, the unemployment rate is seen steady at 3.6%.
Data released earlier this week (JOLTS, ADP) began to point to a loosening labor market. On Thursday, data showed the weekly initial jobless claims were 228,000 in the week ended March 31, above the 200,000 expected, adding evidence the job market is facing some pain. The official government report will have the last word and could fuel expectations the Fed will remain on hold at the May meeting.
From a technical perspective, the EUR/USD pair maintains a bullish short-term outlook, according to indicators on the daily chart, with the RSI and the MACD turning flat above their midlines. However, the bullish momentum has faded as investors take the sidelines.
On the upside, the critical short-term barrier is given by recent highs at the 1.0970 area, followed by the 1.1000 psychological level and February’s high of 1.1032. On the flip side, the immediate support is seen at the key 1.0900 area and then the 1.0790-1.0800 zone, where the 20-day SMA reinforces the psychological level.
