Traders are waiting for the labor market data to start the new impulse
The EUR/USD price is consolidating near the level of 1.1215. Traders are not in a hurry to open new positions before the release of important data on the labor market in the US for the previous month. Reports about non-farm employment change, average hourly earnings and unemployment rate will be released at 12:30 GMT. Currently the possibility of an interest rate hike by the Fed after the FOMC meeting on June 13-14 is above 90%, and strong data may force the chairwoman of the Fed Janet Yellen to use hawkish rhetoric concerning the number of rate hikes and balance sheet cuts during the year.
For growth to continue, quotes need to overcome the support level of 1.1260. In this case price may continue its upward movement to 1.1350, 1.1460 and 1.1500. On the other hand, breaking through the support at 1.1200 that coincides with the local minimum may be considered as a signal for opening short positions with the first targets at 1.1160. 1.1115, 1.1080 and the stop above 1.1230. According to our estimates, there is a high probability of strong price movement after the end of current consolidation and the trigger may come from the NFP release later today.