EUR/USD Lingers Near Fibo Support

Desks have touted pre-NFP positioning/book-squaring and lower liquidity conditions as possible accelerants surrounding the USD bid in recent sessions, and the EUR/USD cross hasn't been able to escape the broader trend. That being said, EUR/USD initially bounced from noted Fibonacci retracement support at $1.1837 on Thursday, with a fairly swift rally back to $1.1884, as the EUR exhibited some relative outperformance. However, with dollar momentum growing throughout the U.S. session and a lack of movement in Asia, the support level is once again within touching distance, with spot last dealing just above $1.1840, a handful of pips lower on the day.

• In terms of EUR-specific matters, Thursday saw ECB's Weidmann express a positive view surrounding a symmetric inflation target around 2.0% in the medium term, although he was sceptical re: tolerating an outright inflation overshoot, underscoring his typically hawkish nature.
• From a technical perspective, a break below the aforementioned support level ($1.1837) would open the way to the Apr 6 low ($1.1795). Below there would expose the Apr 5 low ($1.1738), which protects the Mar 31 low and key support level ($1.1704). To the upside, bulls need to reclaim the June 25 high ($1.1975) before aiming higher.
• The monthly U.S. NFP print will set the broader tone on Friday, while addresses from ECB President Lagarde and Governing Council member de Cos provide some local interest.