EUR/USD looks to extend the upside around 1.1400

The pair is up smalls and challenges the 1.1400 handle.
Flash CPI in Euroland next of relevance in the docket.
Later, US Payrolls and Powell’s speech should rule the sentiment.

Pablo Piovano FXStreet

EUR/USD is adding to yesterday’s gains and trades in the vicinity of 1.1400 the figure, extending the rebound from weekly lows near 1.1300 and challenging the bearish ‘outside day’ charted on Wednesday.

EUR/USD focused on EMU, US data

EUR saw its demand picking up pace in the last couple of sessions in light of the persistent offered tone in the buck, declining US yields and some renewed optimism in the US-China trade dispute.

In the meantime, spot is expected to trade in a cautious mood ahead of key releases later today, including advanced inflation figures in the euro area for the month of December, US Non-farm Payrolls and the speech by Fed’s J.Powell.

What to look for around EUR/USD

Alternating risk trends continue to be the most relevant driver of the pair in the very near term. In addition, investors keep looking to US-China trade front along with prospects of a potential slowdown in the global economy, particularly exacerbated by recent results in Chinese fundamentals and Apple’s warning on sales. Today’s speech by Chief Powell should keep the buck under scrutiny, as it could unveil further details of the rate path by the Federal Reserve in the coming months. Further out, yield spread differentials between Germany and the US keep their significance when comes to determine the price direction in the pair.

EUR/USD levels to watch

At the moment, the pair is gaining 0.08% at 1.1401 facing the next up barrier at 1.1412 (high Jan.4) seconded by 1.1478 (100-day SMA) and finally 1.1547 (high Jan.1). On the flip side, a breakdown of 1.1309 (2019 low Jan.2) would target 1.1268 (monthly low Dec.14 2018) en route to 1.1214 (2018 low Nov.12).

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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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