EUR/USD is stabilizing in a broad recovery on the longer dated charts from 1.0987 and near-term minor recoveries have been struggling to record scores out of the 1.10 territory, suppressed by headwinds from the 200 SMA on the hourly charts at 1.1066 today. The pair is mostly in a consolidative phase on a pinnacle looking week in terms of data and events.
We have already seen the ISM data that has come in at 50.1, which was hardly changed from September's 50.2 figure. As much as the sector will feel the pinch of a strong dollar and weakness in external demand, the service sector might bring some balance into the economy and offer a better performance in Q4 2015 than Q3, leaving the door open for December. Next up on the list of data to look out for from the US will be the Fed's Chair congressional testimony and payroll figures on Friday in the US that should be positive according to analysts at TD Securities, all as prelude to the Dec FOMC.
Technically, key resistance on the upside is at the 55 week ma and 2014-2015 downtrend at 1.1415/28. To the downside, key levels below 1.1004 recent low and 1.0897, 28th Oct lows are 1.0855 6th Aug lows and 1.0808 19th July low. While price remains below the 200 DMA, at 1.1106 currently, downward pressures should persist.
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