EUR/USD Retreats from 1.0920 After ECB Meeting, NFP in Focus

EUR/USD has pulled back 0.4% from a six-week high of 1.0920 to currently trade at 1.0875, following Thursday's hawkish European Central Bank policy meeting. The ECB maintained its hawkish stance, keeping rates unchanged at 4.25% while signaling persistent inflation concerns. ECB President Lagarde emphasized that rate cuts remain off the table until sustained progress on inflation is evident. The pair's retreat reflects profit-taking ahead of Friday's crucial US Non-Farm Payrolls report, with consensus expecting 185,000 jobs added. Technical analysis shows immediate support at 1.0850 (20-day moving average) and resistance at the recent 1.0920 high. A strong NFP reading above 200,000 could push EUR/USD below 1.0850, while a weak print might reignite euro strength toward 1.0950. Traders are positioning cautiously as employment data could significantly influence Federal Reserve rate expectations.