EUR/USD clings to gains near 1.1080 ahead of ECB

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).