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EUR/USD taking on post-NFP recovery to 1.0770

FXStreet (Mumbai) - The EUR/USD pair extends its recovery mode into the late-Asian trades, and now rises to fresh session highs as the greenback continues to correct lower after the recent upsurge.

EUR/USD eyes 5-DMA

The EUR/USD pair trades 0.26% higher at 1.0767, testing session highs posted at 1.0771 last minutes. The main currency pair trades firmer and extends the recovery from half-yearly lows towards 1.08 handle as the greenback halted its bullish run and eased in Asia.

On Friday, the EUR/USD pair plummeted to 1.0708, the lowest levels since April, after the US dollar sky-rocketed on the back of impressive US NFP data, which almost sealed in a Dec Fed rate hike deal. The NFP for October saw a 271,000 increase, sharply higher than the downwardly revised 137,000 in Sept and beating estimates of an 185,000 print.

Moreover, markets also bought in the USD after the Fed Watch tool by CME showed the odds for a rate hike in December jumped above 70% after the US jobs report against 58% seen pre-NFP release.

Analysts at Rabobank noted, "The move has caused us to reassess our medium-term target for the currency pair which for some time we have maintained at 1.05. While it appears that this target could be hit far sooner than we had been predicting, there is every reason to suspect that the move in EUR/USD over the next few months will not be linear and that parity in EUR/USD could still be further away than it currently appears."

Looking ahead, markets will continue to digest the recent economic updates ahead of German trade and EZ Sentix confidence index, which will fill an otherwise quiet EUR calendar.

EUR/USD Technical Levels

The pair trades firmer on 1.07 handle with the next hurdle in sight at 1.0797/1.0800 (5-DMA/ round number) from there to 1.0830 (1h 50-SMA). While to the downside, the immediate support is seen at 1.0719/28 (Today’ low/ daily pivot). Selling pressure will intensify below the last, dragging the pair towards 1.0708/00 (Nov 6 Low/ psychological levels).

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