EUR/USD extends the recovery to the 1.1020 region, ECB, data on sight

EUR/USD moves higher to the 1.1020 area on Monday.
ECB’s Christine Lagarde will testify to EU Parliament.
Final November PMIs in Euroland also due later.

Pablo Piovano FXStreet

The single currency has started the week on a positive mood and is now lifting EUR/USD to fresh daily highs in the 1.1020 zone.

EUR/USD looks to data, trade

The pair is posting gains for the third session in a row on Monday, adding to gains recorded in the second half of last week on the back of the steady performance of the greenback and scarce progress in the US-China trade front.

Spot keeps the gradual recovery well and sound so far, this time bolstered by auspicious results from the Chinese manufacturing PMI, which is helping to sustain the positive note in the risk-associated space.

Later in the day, final November manufacturing PMIs in Euroland are due seconded by the testimony of ECB’s C.Lagarde at the European Parliament. Across the pond, the always-key ISM Manufacturing for the month of November is expected to grab all the attention.

What to look for around EUR

The pair keeps correcting higher after finding quite solid support in the 1.0990 region last week. The euro, in the meantime, is expected to keep tracking developments from the US-China trade dispute as well as USD-dynamics. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.

EUR/USD levels to watch

At the moment, the pair is gaining 0.02% at 1.1017 and faces the next hurdle at 1.1039 (55-day SMA) seconded by 1.1071 (100-day SMA) and finally 1.1097 (monthly high Nov.21). On the other hand, a breakdown of 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.

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