From last week: “EUR/USD pulled back after failing to sustain gains above 1.1040 last week and fell back to 1.0800 on Friday. At the end of the week we saw whip wash moves in the pair as it spiked to 1.0949 at the end of the session, only to close back above 1.0900 and fall again to 1.0820 at the start of the week. We expect the pair to trade predominantly in the range between 1.0800 and 1.1050 ahead of Friday’s NFP data from the US. We expect the pair to gain direction in either way only after Friday’s release where it could rally to 1.1200 to the upside or plunge back toward 1.0500 to the downside”.

Following the NFP report from the US on Friday, EUR/USD rallied back above 1.1000 but failed to sustain gains above this level. Unless the pair breaks above 1.1100, the squeeze higher is unlikely to gather momentum. A move above 1.1100 should pave the way towards the next resistance at 1.1200. To the downside, the pair is supported by a rising trend line off the recent lows now just below 1.0800.