EURUSD holds firm tone and trading around 1.25 handle ahead of US jobs data

EURUSD holds firm tone and trading around 1.25 handle ahead of US jobs data

The Euro remains firm in early Friday’s trading and trading around 1.25 handle which was broken on Thursday’s rally.
Manufacturing data from the Eurozone showed solid results on Thursday, signaling that growth of bloc’s economy is on firm path, which could further fuel expectations that the ECB is on track for tightening monetary policy.
Near-term technical outlook improved as the pair broke above triangular consolidation and shifted focus higher.
Thursday’s long bullish candle underpins for eventual break through barriers at 1.2517 / 37 (Fibo 38.2% of 1.6039 / 1.0340, 2008/2017 fall / 25 Jan peak, the highest since Dec 2014) and extension towards next target at 1.2597 (Fibo 61.8% of larger 1.3992/1.0340 descend).
Close above 1.2517/37 will generate strong bullish signal for continuation of larger uptrend from 1.0340 (2017 low).
Asian low at 1.2486 marks initial support with more significant 1.2400 support, provided by rising 10SMA and 4-hr cloud top.
US jobs data are in focus today and expected to provide fresh signals for the greenback, as hawkish Fed on Wednesday inflated the currency but positive signals from the central bank need further confirmation which could be expected on solid numbers from the US labor sector.
US Non-Farm payrolls are forecasted to rise 184K in Jan, compared to previous month’s 148K, while other key parameters, average earnings and unemployment rate are expected to stay unchanged at 0.3% and 4.1% respectively.

Res: 1.2537; 1.2567; 1.2597; 1.2630
Sup: 1.2486; 1.2453; 1.2428; 1.2400