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Technical Analysis: EURUSD recovery looks difficult below 1.1860, US NFP eyed

Although EURUSD is on a corrective pullback from the yearly low, mainly due to the downbeat US Treasury yields, the pair isn’t lucrative for the bulls ahead of the key US employment figures for March. Not only the strong hopes from American jobs figures but multiple resistance lines and 100-SMA test the bulls for a short-term recovery. Among them, a confluence of a downward sloping trend line from March 09 and a five-week-old falling resistance line, near 1.1800, becomes the immediate important hurdle. Also acting as an upside filter is the 100-SMA level of 1.1855 and one-month-long horizontal line close to 1.1990.

Meanwhile, pullback moves may dwindle around 1.1760 and 1.1730 before hitting the 1.1700 threshold during the short-term weakness. However, any further downside past-1.1700 will not hesitate to target November 2020 low near 1.1600. It should, however, be noted that losses past-1.1600 can make EURUSD vulnerable to revisit the mid-2020 tops close to 1.1420. Hence, bears have an upper hand over the bulls but today’s US data will be the key, not to forget that it’s a Good Friday and markets have thin liquidity.

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