EUR/USD struggles for direction near 1.1340
- The pair exchanges gains with losses in the 1.1330/40 band.
- The greenback remains sidelined in the 96.60 region.
- Advanced PMIs in Euroland, ECB minutes next on tap.
EUR/USD seems to have found some strong resistance in the area of weekly peaks in the 1.1330/40 band for the time being.
EUR/USD looks to data
Spot is trading within a tight range early in the European morning following yesterday’s doji-like performance and a sideline theme in the greenback following yesterday’s FOMC minutes.
In fact, the FOMC revealed its recent shift to a more patient stance was due to the growing uncertainty in the outlook, although further rate hikes should remain on the table as long as the economy keeps the solid pace.
Data wise in Euroland, February preliminary PMIs will grab all the attention later ahead of the publication of the ECB minutes. Across the Atlantic, the Philly Fed is due along with Durable Goods Orders, Existing Home Sales and weekly Initial Claims.
What to look for around EUR
The shared currency continues to look to developments from the US-China trade talks for near term direction as well as any headlines from the effervescence on the US-EU trade front. Today’s release of advanced PMIs should shed further light on the health of the fundamentals in the region amidst the current broad-based slowdown, although the likeliness that positive surprises could move the monetary policy dial of the ECB remains flat.
EUR/USD levels to watch
At the moment, the pair is losing 0.01% at 1.1334 and a break below 1.1308 (10-day SMA) would aim for 1.1234 (2019 low Feb.15) and finally 1.1215 (2018 low Nov.12). On the flip side, the next hurdle emerges at 1.1371 (high Feb.20) seconded by 1.1382 (55-day SMA) and then 1.1394 (100-day SMA).
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.
