EUR/USD makes fresh daily highs above 1.2500

• EUR/USD breaks above 1.2500 and approaches 3-year highs
• Investors focus turn to nonfarm payrolls

The euro is among the best performers on Thursday, with EUR/USD having risen more than 120 pips from daily lows to break above the 1.2500 resistance area in recent dealings.

EUR/USD has steadily moved upwards since mid-European session as the dollar continues to give up the Fed-inspired gains, while investors’ focus turns to the nonfarm payrolls report, which is expected to show US economy added 180K new jobs in January.

At time of writing, EUR/USD is trading at 1.2503, recording a  0.73% gain on Thursday. The pair is on track to post its third daily gain in a row, resuming the dominant bullish bias following a correction from multi-year highs. 

On Wednesday, the Federal Reserve decided to leave policy unchanged but hinted at further rate hikes in the future, giving the USD dollar a short-lived boost.

EUR/USD levels to watch

In terms of technical levels, EUR/USD next resistances could be found at 1.2537 (3-year high scored Jan 25) and then 1.2600 (psychological level). On the downside, supports are seen at 1.2385 (intraday low), 1.2370 (10-day SMA) and 1.2334 (Jan 30 low).