EUR/USD clings to gains near 1.1080 ahead of ECB
- EUR/USD moves once again to the 1.1080 region.
- The ECB accounts coming up next on the docket.
- US Philly Fed index next of relevance later in the day.
EUR/USD maintains the sideline theme in the upper end of the weekly range in the 1.1080/90 band amidst a steady greenback.
EUR/USD focused on trade, ECB
Spot is prolonging the rangebound theme so far on Thursday, although a breakout of the critical resistance in the 1.1080/90 band still remains elusive for EUR-bulls despite the lack of convincing upside traction in the buck.
In the meantime, the US-China trade scenario continues to deteriorate in response to the lack of progress after the announcement of the ‘Phase One’ deal and lately by mounting tensions after the US Senate passed the Hong Kong Human Rights bill earlier in the week.
In the docket, attention will be on the ECB minutes of the latest meeting, speeches by ECB’s De Guindos and the release of the OECD Economic Outlook in the euro area. Across the Atlantic, the Philly Fed manufacturing index should be in centre stage later in the NA session.
What to look for around EUR
Spot met strong resistance in the 1.1080/90 band for the time being while it keeps looking to USD-dynamics and headlines from the US-China trade front for direction. On the macro view, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In this regard, all the looks will be upon the release of November’s preliminary PMIs later in the week.
EUR/USD levels to watch
At the moment, the pair is gaining 0.06% at 1.1078 and faces the next hurdle at 1.1089 (high Nov.18) followed by 1.1173 (200-day SMA) and finally 1.1179 (monthly high Oct.21). On the downside, a break below 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
