Breaching the 1.2150/60 support left the EUR/USD pair heavy and tilted towards the 1.2100 level. If Fed expectations continue to build post-NFP, there might be scope to explore USD longs against the EUR, in the view of economists at OCBC Bank.
See – Nonfarm Payrolls Preview: Forecasts from 10 major banks for May jobs report
Potentially south-bound
“Expect near-term consolidation ahead of the Nonfarm Payrolls report, but further downside may materialise if the ECB remains dovish next week.”
“Another strong showing in NFP may compel the market to further price back in Fed tapering/rate hike expectations.”
“We have been skeptics about the sustainability of the EUR’s rise, and now look towards potential downside.”