EUR/USD limited, finds support above 1.1050

EUR/USD  dropped in New York after being rejected from above 1.1100. The decline found support above 1.1050 and during the last hours it has remained steady hovering around 1.1060.

Low volatility could continue during the Asian session ahead of the release of the US employment data. On Thursday the ADP private payroll report showed better-than-expected data increasing expectations about a rebound in NFP on Friday after a weak reading for May.

“Market participants remain concerned by slowing growth in the US and do not expect the Fed to resume rate hikes until 2018. However, it would likely take another shockingly weak non-farm payrolls report to materially weaken the US dollar”, said analysts at The Bank of Tokyo-Mitsubishi UFJ.

EUR/USD technical levels

Resistance levels are seen at 1.1100/05 (New York high / 100-hour SMA), 1.1120 (July 5 low) and 1.1155 (June 30 high). On the opposite direction, support could be located at 1.1050 (daily low), 1.1020 (July 6 low) and 1.0970 (June 27 low).