EUR/USD stays depressed around 1.1060/50

Pablo Piovano FXStreet

The demand for the shared currency remains subdued at the beginning of the week, taking EUR/USD to the 1.1060/50 band, or 3-day lows.

EUR/USD offered ahead of US events

The pair is fading part of last week’s advance to the 1.1140 region following a strong comeback from the US Dollar after markets seem now to perceive that Democratic candidate H.Clinton could become the next US President at tomorrow’s elections.

According to the latest poll by ‘Real Clear Politics’, candidate H.Clinton would be leading with 203 electoral college votes (46.4%) vs. 164 from her Republican adversary D.Trump (44.4%).

In the today less relevant data space, EMU’s Sentix index rose above estimates to 13.1 for the current month, while EMU’s Retail Sales have contracted less than initially forecasted during September. Previously, German Factory Orders dropped 0.6% MoM in September.

In the US data space, the Fed’s Labor Market Conditions Index is due for release later following last Friday’s Non-farm Payrolls (161K).

Adding to EUR weakness, speculative net shorts have increased to the highest level since mid-January at over 137K contracts during the week ended on November 1, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now down 0.75% at 1.1056 with the immediate support at 1.0850 (low Oct.25) followed by 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the flip side, a breakout of 1.1146 (high Nov.4) would target 1.1186 (200-day sma) and then 1.1191 (6-month resistance line).

To learn more about this topic, check our video analysis.

EURUSD from Tip TV Productions on Vimeo.

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.

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