EUR/USD moves higher beyond 1.2300, NFP on sight

• The pair found support below 1.2300 following cautious Draghi.
• USD steady, looking to consolidate above the 90.00 milestone.
• US February’s Non-farm Payrolls next on tap later today.

The shared currency is now probing the area of daily highs vs. the greenback, lifting EUR/USD to the 1.2315/20 band ahead of the opening bell in Euroland.

EUR/USD focused on payrolls

The pair came under renewed selling pressure in response to the cautious tone from President Draghi at the ECB meeting on Thursday.

It is worth recalling that the central bank removed the pledge to buy more assets if needed, something that investors have already anticipated, although the Council still appears unconvinced of the inflation path. On the latter, the ECB revised lower its inflation projection for 2019.

On the USD side, markets stayed muted after President Trump signed the order to impose tariffs on US imports of steel (25%) and aluminium (10%), as this scenario was already priced in. The greenback managed to regain the critical 90.00 handle and above in the wake of the ECB meeting, and it is now looking to stabilize around those levels.

Nothing worth mentioning on the data front in the euro area, leaving all the attention to the publication of US Non-farm Payrolls for the month of February, expected at 200K. Furthermore, Average Hourly Earnings will also be in centre stage in light of the strong rebound seen in January.

Additionally, Boston Fed E.Rosengren (2019 voter, dovish) and Chicago Fed C.Evans (2019 voter, centrist) will also speak later in the day.

EUR/USD levels to watch

At the moment, the pair is gaining 0.02% at 1.2314 facing the next hurdle at 1.2446 (high Mar.8) seconded by 1.2537 (high Jan.25) and then 1.2557 (2018 high Feb.18). On the downside, a break below 1.2240 (55-day sma) would target 1.2206 (low Feb.9) en route to 1.2165 (low Jan.18).