EUR/USD back above 1.1700, but for how long?

After a brief consolidative stint sub-1.17 handle over the last hours, the EUR/USD pair manages to regain the last during mid-Europe, as we head closer towards the payrolls release.

EUR/USD finds support near 1.1685 region

The spot is seen recovering some ground above 1.1700 levels, looking to regain the key support-turned resistance of 1.1720, as the USD bulls take a breather after the latest upsurge, with the 94.00 resistance continues to remain a tough nut to crack.

Markets seek to book profits on their USD longs ahead of the crucial US labour market report, which is likely to shape up the next direction in the greenback going forward.

A positive surprise on the headline NFP numbers, could send the EUR/USD pair back towards the August lows of 1.1662, while a disappointing release could add extra legs to the ongoing recovery, taking the rate further towards 10-DMA located at 1.1760.

Meanwhile, the Euro also derives some support from stronger-than expected German factory orders data, which arrived at 3.6% in August vs. 0.7% expected.

EUR/USD Technical Levels

Karen Jones, Analyst at Commerzbank explained: “EUR/USD is back under pressure and the 1.1662 August low is exposed. Intraday rallies have so far been relatively tepid and will find initial resistance at 1.1832 55 day ma and remain contained by the 20 day ma at 1.1851.We would treat a break below 1.1660 as the trigger for a sell off to the mid-June high at 1.1296 and the more important 1.1110 end of May low.”