EUR/USD stays firm near 1.1100, looks to data

EUR/USD trades close to the 1.1100 handle.
Dollar weakness remains the name of the game so far.
EMU final Services PMI, US ADP, Non-Manufacturing PMI next on tap.

Pablo Piovano FXStreet

The buying interest around the single currency remains well and sound for yet another session on Wednesday, lifting EUR/USD to the vicinity of the 1.1100 handle, or fresh 2-week highs.

EUR/USD focused on data, USD, trade

The pair is posting gains for the fifth session in a row on Wednesday, always on the back of the persistent selling bias in the greenback and the re-emergence of trade concerns.

In fact, the US-China trade front is back to the fore as of late after President Trump suggested on Tuesday it would be better to wait until past the US elections next year to go for another attempt to clinch a deal with China. Trump’s comments gave extra legs to the pair via lower US yields and the negative impact on the buck.

Data wise in Euroland, final November Services PMIs are due along with a German 10-year Bund auction. Across the pond, the ADP report will grab attention in the first turn seconded by the ISM Non-Manufacturing.

What to look for around EUR

The pair is flirting with the key resistance area near 1.1100 the figure amidst a broad-based bearish note in the greenback and the comeback of US-China trade tensions. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany and the euro bloc as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.

EUR/USD levels to watch

At the moment, the pair is gaining 0.05% at 1.1087 and faces the next hurdle at 1.1097 (monthly high Nov.21) seconded by 1.1160 (200-day SMA) and finally 1.1179 (monthly high Oct.21). On the other hand, a breakdown of 1.1041 (55-day SMA) would target 1.0989 (monthly low Nov.14) en route to 1.0925 (low Sep.3).

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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