EUR/USD sidelined ahead of NFP on Friday

• The non-farm payroll and wages´ growth figures should be the next catalysts that will move significantly the most liquid currency pair.
• EUR/USD is trading sideways as USD bulls are taking profits and weighing the words of the FOMC statement on Wednesday.

The EUR/USD is trading at around 1.1974 up 0.20% in Thursday’s trading. The pair is trading close to a 4-month low below the 1.2000 psychological level. It is also worth mentioning that it is trading below its 200-period simple moving average on the daily chart which is considered a bearish signal. 

The next market-moving event will be the release of the US non-farm payroll report and most importantly the wages´ growth data (average hourly earnings). The news is scheduled for Friday at 12:30 GMT and high volatility is to be expected across the board.

Earlier in the day, the Eurozone preliminary inflation data came in below expectations. The core Consumer Price Index for April decelerated to 0.7% versus the 0.9% expected by analysts while the non-core CPI came also worst-than-expected at 1.2% against the 1.3% forecasted by analysts. Low inflation levels are going to make it more difficult for the European Central Bank to justify a hawkish rhetoric.

The EUR/USD is mainly trading sideways as market participants are taking some profits from the USD long trade. The market is still weighing the FOMC statement released on Wednesday. 

EUR/USD 4-hour chart 

The trend is bearish and support is seen at 1.1937 swing low and at 1.1800 figure while resistance Is priced in at 1.2000 important figure and at 1.2054 swing low.