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​Technical Analysis: EURUSD bulls retreat ahead of the NFP

Having confirmed falling wedge bullish formation the previous day, EURUSD buyers seem to catch a breath ahead of the key US employment figures for April. While the forecast suggests horrible loss to the world's largest economy, mainly due to the coronavirus (COVID-19), recent optimism surrounding the US-China relations seems to have dragged the quote off-late. Technically, the pair's drop below 61.8% Fibonacci retracement can recall the previous day's low near 1.0765. Though, a further downside past-1.0765 will be challenged by the MACD, if not then 1.0725 could return to the charts.

On the upside, a confluence of 50% Fibonacci retracement and 200-HMA could challenge the buyers, around 1.0870, during the fresh run-up. However, sustained rise past-1.0870 can take halts around 1.0930 and 1.0960 before probing the monthly top close to 1.1020. It's worth mentioning that the fundamentals are in favor of the pair's upside, backed by the latest confirmation of the bullish chart pattern. As a result, sellers should look for opportunities to exit. However, surprises are bound to land and hence trading should be cautious ahead of the event.

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