EUR/USD now struggles to sustain above 1.1800 handle
• Fails to capitalize on early move beyond 1.18 mark.
• Modest USD recovery/US bond yields capping gains.
• US housing market data might provide some impetus.
The EUR/USD pair continued with its struggle to sustain above the 1.1800 handle, albeit has managed to hold with modest daily gains through the early NA session.
The pair met with some supply near the 1.1820-25 zone and failed to benefit from some bullish comments by the ECB President Mario Draghi. During a scheduled speech at the Frankfurt European Banking Congress, Draghi focused on the strong outlook for the region's economy and how the monetary policy is playing an important role.
The pull-back, however, found some decent support near the 1.1785 region amid persistent US Dollar selling bias led by a WSJ report that Robert Mueller had issued a subpoena to more than a dozen top Trump administration officials in mid-October.
Meanwhile, a modest uptick in the US Treasury bond yields extended some support and eased some of the downward pressure on the USD, with the pair now oscillating in a narrow trading range ahead of the US housing market data.
Ahead of the US economic calendar, Deutsche Bundesbank President Jens Weidmann's speech would be looked upon for some short-term momentum play.
Technical levels to watch
Immediate hurdle remains near the 1.1820 region and is followed by Wednesday's swing high resistance near 1.1860 level. On the flip side, weakness below 1.1785 level is likely to find support near the 1.1755 area, nearing 100-day SMA, below which the pair head towards retesting the 1.1700 handle.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
