EUR/USD ends the day lower after ECB, NFP eyed

EUR/USD retreated from daily highs and ended the session lower as the euro weakened following the ECB meeting and Draghi presser.

The ECB decided to leave rates unchanged at its June meeting and Draghi said it’s time to focus on implementation of announced measures before start thinking in new ones. The ECB also upgraded 2016 growth and inflation forecasts.

Nevertheless, the euro failed to sustain gains and fell to a low of 1.1144 after a brief appearance above 1.1200, with a 1-week high set at 1.1219. At time of writing, EUR/USD was trading at 1.1153, recording a 0.3% loss on the day.

Investors may take a wait-and-see approach over the upcoming sessions as they await the key US nonfarm payrolls report due tomorrow 13:30GMT. Market consensus points to a job gain of 164K in May.

EUR/USD technical outlook

“The EUR/USD pair technical stance is still bearish, and will remain so unless the price recovers beyond 1.1230 a strong dynamic resistance as in the daily chart the 20 DMA and the 100 DMA converge there,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is struggling around a horizontal 20 SMA, whilst the technical indicators head lower around their mid-lines, indicating bears are in control. Should the decline extend beyond 1.1120, the risk turns towards a test of 1.1000/40 this Friday, on a strong US employment report.”

Support levels: 1.1120 1.1085 1.1040. Resistance levels: 1.1200 1.1235 1.1280.