EUR/USD holds at the upper bound on the week

After a bit of a stutter following the opening gap higher on Monday, the pair is making up for that now in a push towards 1.0800. The high yesterday briefly broke the figure level but the close ultimately settled below that. And more importantly, sellers maintained a close below the confluence of the 100 (red line) and 200-day (blue line) moving averages. The key threshold is now seen at 1.0793-94.

As such, that will make for a key technical point to watch for EUR/USD alongside offers at 1.0800. Then, there’s also the 50.0 Fib retracement level of the swing lower last month at 1.0791. Adding to that, there are also large option expiries at the figure level tomorrow as outlined here.

Putting all that together, it makes for a strong case for price action to stay more limited closer or to keep just under the 1.0800 level at least for the day ahead. That until we get to the US jobs report tomorrow.

But given so much interest and attraction near 1.0800, a firm break above that will give buyers much more breathing room to work with if they can get there. That could very well set up for a stronger bounce towards 1.0900 again next.

Of course, it will depend firstly on how the non-farm payrolls data tomorrow plays out. Then also, the second round of the French elections over the weekend.

This article was written by Justin Low at www.forexlive.com.