EUR/USD testing lows near 1.1385 in early Europe

The EUR/USD pair failed to resist above 1.14 barrier in early Asia, and from there extends its bearish bias heading towards the European session amid as dust settles over the US jobs data.

EUR/USD supported above 5-DMA at 1.1377

Currently, EUR/USD trades modestly flat at 1.1386, hovering within a striking distance of fresh session lows struck at 1.1383 last minutes. The main currency pair came under renewed selling pressure and now pushes lower towards 5-DMA support as the US dollar recovered losses against its major peers and now jumps back on the bids, with persistent optimism after the US jobs data bettered expectations and reinforced April/June Fed rate hike bets.

Moreover, traders prefer to hold the US currency as they expect positive reaction from the European traders, cheering the US employment numbers. Further, markets will also look forward to the Euro zone dataflow, including the Sentix index, employment data and PPI figures, for fresh impetus on the EUR ahead of the US factory orders and LMCI due later in the NY session.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1437/50 (Apr 1 High/ Oct 2015 levels). A break beyond the last, doors will open for a test of 1.1500 (key psychological levels). On the flip side, the immediate support is placed at 1.1350/31 (1h 100-SMA) below which at 1.1287/54 (10-DMA/ 1h 200-SMA) could be tested.