The demand for the single currency stays subdued at the end of the week, with EUR/USD breaking below the 1.0700 handle although some support near 1.0690 seems to have emerged.
EUR/USD focus on US data
The pair remains on the defensive so far today, fading yesterday’s spike to fresh 3-week tops near 1.0780, against the backdrop of a persistent albeit slow recovery of the greenback.
Adding to EUR-downside, cautiousness is growing bigger among traders in light of the upcoming French elections (Sunday). According to prior surveys, all four candidates Macron, Le Pen, Fillon and Melenchon stay around 20%-24% of the vote intentions, paving the way for an almost sure second round in early May.
In the data space, flash manufacturing PMIs in Euroland came in on the strong side for the month of April, while Existing Home Sales and Markit’s manufacturing PMI are due later in the US calendar.
EUR/USD levels to watch
At the moment, the pair is losing 0.13% at 1.0703 facing the next support at 1.0688 (low Apr.21) seconded by 1.0682 (20-day sma) and finally 1.0658 (55-day sma). On the flip side, a breakout of 1.0780 (high Apr.20) would open the door to 1.0839 (200-day sma) and then 1.0905 (high Mar.27).