EUR/USD firmer, looks to test Monday’s high ahead of NFP

The EUR/USD pair is seen building onto yesterday’s gains, with the bulls retaining control amid persistent broad based US dollar weakness and negative Asian equities.

EUR/USD supported above 20-DMA at 1.0663                                               

Currently, EUR/USD advances +0.13% to 1.0673, hovering close to session highs previously posted at 1.0677. The bullish pressure behind the EUR/USD pair remains intact for the second straight session as markets extend their profit-taking spree on the USD shorts ahead of the highly influential US non-farm payrolls data.

Moreover, the euro derives support on the back of increased demand for the funding currency amid negative sentiment prevalent across the financial markets in Asia, as investors remain cautious heading into Sunday’s Italian referendum.

Later today, we have a fairly light EUR calendar, while the US docket offers the crucial US labor market report and a couple of Fedspeaks.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0685 (weekly high). A break beyond the last, doors will open for a test of 1.0700 (round figure) and from there to 1.0726 (daily R2). On the flip side, the immediate support is placed at 1.0638/37 (daily pivot/5-DMA) below which 1.0612 (10-DMA) and 1.0561 (Nov 28 low) could be tested.