EUR/USD sidelined around 1.1100 ahead of key US data
- EUR/USD looks consolidative around 1.1100.
- German Industrial Production contracted further in October.
- US Non-farm Payrolls will grab all the attention later today.
EUR/USD manages well to keep business in the upper end of the range around the 1.1100 handle so far on Friday.
EUR/USD cautious ahead of data
After clinching fresh monthly peaks near 1.1120 on Wednesday, spot appears to have stabilized in the 1.1100 neighbourhood as market participants continue to monitor the alternating developments from the US-China trade front.
Also propping up the improved mood in the pair, the greenback remains under pressure on the back of trade headlines and mixed results from US fundamentals.
In the docket, the euro seems to have bypassed another poor print from the German calendar, showing that Industrial Production contracted more than expected 1.7% on a onthly basis during October.
Moving forward, all the attention will be on November’s US Payrolls (183K exp.) and the advanced estimate of the December Consumer Sentiment tracked by the U-Mich index, all due later in the NA session.
What to look for around EUR
The pair is attempting some consolidation around 1.1100 the figure amidst the continuous bearish note in the greenback, US-China trade headlines and ahead of key US data releases. On the more macro view, the slowdown in the region remains far from abated and continues to justify the ‘looser for longer’ monetary stance from the ECB and the cautious/bearish view on the European currency in spite of the ongoing (temporary?) recovery.
EUR/USD levels to watch
At the moment, the pair is losing 0.01% at 1.1103 and faces the next hurdle at 1.1116 (monthly high Dec.4) seconded by 1.1157 (200-day SMA) and finally 1.1179 (monthly high Oct.21). On the other hand, a breakdown of 1.1066 (100-day SMA) would target 1.1041 (55-day SMA) en route to 1.0989 (monthly low Nov.14).
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.
