The pair saw a bit of a retreat in the past hour from a high of 1.0463 to a low of 1.0393, before keeping just above 1.0400 currently. As we get into European trading, the dollar is seeing light bids although the currency is still holding lower so far on the day.
For EUR/USD, the technical picture is holding up after yesterday's developments. The pair managed to break above its 200-day moving average (blue line), now seen at 1.0368, and that will remain the key level to watch before the week comes to a close.
Hold above that and buyers will be able to lean on the key level in defining risk as they search for further upside momentum. However, there is still more work to be done in breaking above the recent highs last month at 1.0481-96. For relative ease of mind, a break above 1.0500 would give buyers much more confidence in chasing the next upside leg.
That is pretty much the technical predicament that the pair is in right now, all before tomorrow's US non-farm payrolls.
