- The pair’s upside loses momentum near 1.1480, 100-day SMA.
- The greenback still trades below the 96.00 handle.
- German Industrial Production contracted 1.9% MoM in November.
The selling pressure around the European currency appears to have re-emerged today, forcing EUR/USD to give away part of the recent up move to the 1.1480 region.
EUR/USD capped by 100-day SMA near 1.1480
The 3-day recovery in spot seems to have met some important selling area near the 100-day SMA in the 1.1480 region, triggering the current correction lower to the 1.1440/30 band.
In the data space, German Industrial Production contracted at a monthly 1.9% during November, missing expectations. Moving forward and still in Euroland, several confidence/sentiment gauges are due later in the session. Across the pond, JOLTs Job Openings will be the sole publication later in the NA session.
What to look for around EUR/USD
Spot continues to look for any development from the US-China ongoing trade talks in Beijing, with headlines expected to hit the wires at some point later today. Other than trade, investors continue to gauge the probability of a ‘no hike’ this year by the Federal Reserve, while attention also remains on a potential slowdown in the US economy. In this regard, latest US ISM Manufacturing and Non-manufacturing releases appear to be reinforcing this view for the time being.
EUR/USD levels to watch
At the moment, the pair is losing 0.23% at 1.1448 and a break below 1.1309 (2019 low Jan.2) would target 1.1268 (monthly low Dec.14 2018) en route to 1.1214 (2018 low Nov.12). On the upside, immediate hurdle aligns at 1.1479 (high Jan.7) followed by 1.1497 (high Jan.2) and finally 1.1502 (high Nov.7 2018).
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