EUR/USD Forecast: Euro could extend recovery on a soft US jobs report

• EUR/USD continues to edge higher following Thursday’s rally.
• Nonfarm Payrolls in the US are forecast to rise by 180,000.
• The pair could encounter stiff resistance at around 1.0900.

After touching its lowest level since December 13 at 1.0780 in the European session on Thursday, EUR/USD reversed its direction in the second half of the day and closed in positive territory. The pair holds comfortably above 1.0850 early Friday and the near-term outlook points to a bullish tilt.

The US Dollar (USD) came under selling pressure in the American session on Thursday as US Treasury bond yields continued to push lower following disappointing employment-related data releases. Weekly Initial Jobless Claims rose to 224,000, the highest reading since early November, and the Employment Index of the ISM Manufacturing PMI survey declined to 47.1 in January from 47.5 in December.