EUR/USD steady before US payrolls report

Thursday trading was tranquil in terms of volatility, while EUR/USD decided to wait for more pronounced fundamental impetus on Friday. At the moment it is hovering slightly below the weekly S1 at 1.09, thus supporting our medium term bearish outlook. Short traders remain focused on the 1.08 mark, where May and July lows are reinforced by the weekly S2. This area is highly likely to be tested on Friday in case of positive US jobs report. On the other hand, a disappointment from fundamental front may send EUR/USD higher, and bulls are determined to regain 1.10 (weekly PP).

Bulls are holding the majority of open positions in the SWFX market, namely 51% of them, while commands to buy the Euro in 100-pip range from the spot dropped back to 45% (53% yesterday).