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Technical Analysis: EURUSD stays above 4-month-old support line on NFP-day

Despite flashing the yearly low the previous day, EURUSD fails to extend the fall during the pre-NFP dull trading session on Friday. The pair earlier bounced off a downward sloping trend line since mid-October 2019, at 1.0960 now. Considering the oversold conditions of RSI, the pair is expected to stretch the pullback towards a 61.8% Fibonacci retracement level of 1.1015. Though, pair's further upside will be capped by 50% Fibonacci retracement figure of 1.1060, if not then 50-day SMA, around 1.1095/1.1100 now, can challenge the bulls.

On the downside, pair's declines below 1.0960 can take rest around 1.0940 and 1.0900 before revisiting the year 2019 bottom close to 1.0880. In a case where the bears keep dominating past-1.0880, February 2017 top near 1.0830 will be in the spotlight.

It's worth mentioning that while early signals to the US jobs report are positive, any disappointment will have larger repercussions and shouldn't be ignored.

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