EUR/USD: Pressure remains bearish ahead of NFP report which could be determinant

The EUR/USD lost another 100+ pips on Thursday, between a start to the day around 1.0949, and a low of 1.0819, as the USD strengthened, and the virus panic continued to wreak havoc in the EU.

The USD was unaffected by the weekly U.S. unemployment figures, which marked a new all-time high of 6.6 million.

Today, the US job market will again be in the spotlight as investors focus on the NFP report on US job creation for last month.

The consensus expectation is for 99,000 job losses, but these figures do not really reflect the impact of the virus yet, as the survey on which they are based was done before the US states began to implement containment and social distancing measures.

Also to be watched today is the ISM Services Index for the last month, which is expected to drop sharply to 44 points from 57.3 points the previous month.

Lastly, it should not be forgotten that the weekend is approaching, and given the EUR/USD's sharp drop, profit taking is not excluded, which could encourage a rebound.

From a technical point of view, we will note that the UOB bank explained this morning that new losses are not excluded today:

"We were expecting the euro to weaken on Thursday, but we felt that it was "unlikely to threaten the strong support at 1.0840″. The ensuing weakness exceeded our expectations, as the euro collapsed to a daily low of 1.0820. The breakout of the strong support coupled with the improvement in the downtrend momentum suggests that the euro is likely to weaken further towards 1.0785. Looking ahead to today, the next support at 1.0750 is likely to be out of reach. Overall, the euro's current downward pressure is considered intact unless it can regain above 1.0900 (minor resistance is at 1.0870)".

Currently, the pair is trading at 1.0795 on the forex.