EUR/USD sidelined near 1.2500, NFP eyed

• Spot is off highs near 1.2520 seen overnight.
• USD posting decent gains, but remains bearish.
• Consolidation is seen ahead of US payrolls.

The single currency is trading slightly in the negative area vs. its American peer at the end of the week, taking EUR/USD to the 1.2500 neighbourhood ahead of the opening bell in Euroland.

EUR/USD attention to NFP

Spot is retreating for the first time after three consecutive advances on Friday, coming down to the sub-1.2500 levels after climbing as high as the 1.2520 zone during the Asian trading hours.

The persistent sell off around the greenback has allowed the pair to recover from lows in the 1.2330 region seen on Monday, all amidst a sharp pick up in yields of the key US 10-year benchmark and despite the hawkish twist from the Federal Reserve at Yellen’s last meeting on Wednesday and the positive surprise from January’s ISM manufacturing published on Thursday.

In the data space, it’s non-farm payrolls day and markets are likely to consolidate ahead of the release. Consensus expects the US economy to have added 180K jobs during last month, while the jobless rate is seen at 4.1% and the average hourly earnings is expected at 2.6% YoY.

EUR/USD levels to watch

At the moment, the pair is losing 0.19% at 1.2490 facing the immediate support at 1.2399 (10-day sma) followed by 1.2336 (low Jan.30) and finally 1.2251 (21-day sma). On the other hand, a breakout of 1.2522 (high Feb.2) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014).