EUR/USD To Trade With Risks Skewed Higher

EUR/USD to trade with risks skewed higher amid positive investor risk sentiment, successful auctions of Spanish & French government bonds yesterday reflecting easing concerns over euro-zone''''s sovereign-debt crisis. But EUR/USD gains tempered by caution before U.S. non-farm payrolls data, positions adjustment before weekend. Yesterday''''s ECB rate decision a non-event as central bank kept its benchmark rate at 1.0% & extended bank funding liquidity measures as widely anticipated. Data focus: 0755 GMT German August services PMI, 0800 GMT euro-zone August services PMI, 0900 GMT euro-zone July retail sales. EUR/USD daily chart positive-biased as stochastics rising from oversold; MACD staging bullish crossover against its exponential moving average, although inside-day-range pattern completed yesterday. Resistance at 1.2848-1.2855 band (yesterday''''s high-Wednesday''''s high); breach would target 1.2870 (38.2% Fibonacci correction of 1.3333-1.2584 Aug. 6-Aug. 24 decline), then 1.2923 (Aug. 18 high), 1.2959 (50% correction), psychological 1.3000 and 1.3047 (61.8% correction). Support at 1.2775 (yesterday''''s low); breach would expose downside to 1.2661 (Wednesday''''s low), then 1.2623 (Tuesday''''s low), 1.2603 (Aug. 25 low) and 1.2584 (Aug. 24 low).