EUR/USD started June with a 100-pip rally after a volatile end to May.
Given the selloff we saw last month, a retracement in early June was to be expected, although I did think a 1.0600 retest might come first.
So what should we watch ahead of Friday’s non-farm payroll (NFP)?
The first level I’m watching is 1.0760, as the euro didn’t give us a convincing break on Thursday, leaving it intact as resistance.
We saw something similar from the US Dollar Index (DXY) in relation to the 103.50 yearly open I’ve discussed at length.
So as of now, the dollar is still above critical support, and the EURUSD is below resistance.
But instead of expecting a reversal immediately from these levels, Friday’s NFP volatility could produce a few long wicks to trade next week.
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