EUR/USD struggles for direction around 1.0980

Pablo Piovano FXStreet

The common currency is alternating gains with losses vs. the buck on Wednesday, with EUR/USD gyrating around the 1.0980 area.

EUR/USD focus on US docket, Fedspeak

The lack of direction remains well and sound around the pair for the time being, as the persistent bearish bias around the US dollar combines with the inability of the single currency to gather any traction.

Spot keeps the choppy trade during the first half of the week, navigating a narrow range with decent support so far emerging in the 1.0960 area and gains capped near 1.1030.

Nothing scheduled data wise in the euro area, whereas MBA’s Mortgage Applications rose 0.6% WoW in the US docket. Further releases will show Building Permits, Housing Starts and the Fed’s Beige Book. In addition, San Francisco Fed J.Williams (2018 voter, neutral), Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) are all due to speak later in the day.

EUR/USD levels to watch

The pair is now flat at 1.0979 facing the next resistance at 1.1029 (high Oct.18) followed by 1.1067 (4-month resistance line) and then 1.1138 (20-day sma). On the flip side, a breakdown of 1.0964 (low Oct.17) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24).

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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