EUR/USD holding gains to session high at 1.1150 ahead of NFP

The EUR/USD major maintained its bid tone and held on to its recovery gains to currently trade near session high around 1.1150 region, just below 50-day SMA.

The pair this week rose to 6-week high before reversing sharply to erase all of its weekly gains. On Friday, the pair shrugged-off a sharp decline in German factory order and managed to stage recovery, but still remained in negative territory for the week. 

Further recovery, however, remains capped as traders turn cautious ahead of the key NFP data, which would determine the Fed's monetary policy stance for 2016 and eventually drive the greenback in the near-term.

Technical levels to watch

From current levels, a sustained move above 1.1150 (50-day SMA region), leading a move above 1.1175 horizontal resistance, seems to assist the pair back beyond 1.1200 handle, towards testing 100-day SMA strong resistance near 1.1230-35 region.

On the flip side, 1.1115-10 region might continue to extend immediate support, below which the pair seems all set to extend its slide back towards the very important 200-day SMA support near 1.1080 region. A follow through selling pressure below 200-day SMA now seems to open room for further depreciating move initially towards 1.1030 intermediate support ahead of the key 1.1000 psychological mark support.