EUR/USD looks for direction near 1.10 ahead of key data

EUR/USD keeps orbiting around the 1.10 handle at the end of the week amidst anaemic trade conditions and marginal volatility.

EUR/USD focused on EMU data

The pair is struggling to add gains to Thursday’s advance, although it is so far managing well to keep business at/above the critical support at 1.10 the figure.

In the meantime, the pair is prolonging the multi-session rangebound theme amidst the absence of progress in the US-China’s ‘Phase One’ deal and growing concerns around the situation in Hong Kong.

In the docket, German Retail Sales contracted at a monthly 1.9% during October and expanded 0.8% from a year earlier.

Later in the day, preliminary inflation figures in France, Italy and the broader Euroland for the month of November should grab all the attention seconded by the German labour market results.

What to look for around EUR

Spot has been rejected from the vicinity of the 1.1100 barrier once again last week, sparking a corrective downside to the 1.10 area and below, which continues to act as a solid contention zone. As always, EUR is expected to keep tracking trade headlines and USD-dynamics for the time being. 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 0.01% at 1.1009 and faces the next hurdle at 1.1038 (55-day SMA) seconded by 1.1074 (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).