EUR/USD sleeping near 1.1000, likely waking up when November ends

The EUR/USD pair remains steady trading above 1.1000 on a quiet session amid US holidays. It is posting minor daily gains as it remains close to November lows. Since the weekly opening, it traded in a range of fewer than 40 pips. 

Low volatility is the theme 

Majors are moving in tight ranges on a low liquidity environment that is likely to continue into the Asian session and probably for the rest of the week.  Wall Street did not open today and will observe an early close tomorrow. 

In Europe, the economic calendar shows important reports to be released on Friday, including German Retail Sales and Unemployment Rate and Eurozone inflation. Today’s inflation numbers from Germany had no impact on the euro. “Consumer price data for Germany shows a lift to 1.2% from a previous reading of 0.9%. The lift in the headline annual inflation data was closely aligned with market expectations. This paves the way for a lift in the euro area inflation data”, explained analysts at ANZ.

Headlines regarding US-China negotiations are being watched closely by market participants. Yesterday US President Trump signed a bill supporting Hong Kong protesters, adding an extra risk for trade talks. Both powers do not appear to be close to a deal. 

Levels to watch 

The EUR/USD holds a bearish tone from a technical perspective in the short-term. It is well supported above the 1.0985/1.1000 area;  a break lower would likely trigger more losses. The next strong support might be seen at 1.0965 followed by 1.0940. 

On the upside, a firm recovery above 1.1030 would remove the downside pressure and probably clear the way to more gains for the euro in the short term. The next important resistance is seen at 1.1050/55.