EUR/USD stuck around 1.0980, US data, Fedspeak eyed

Pablo Piovano FXStreet

The shared currency keeps a steady performance following the opening bell in Euroland on Wednesday, with EUR/USD mostly steady around the 1.0980 area.

EUR/USD focus on US data

Spot has managed to regain the key 1.1000 handle and above on Tuesday, although the upside momentum run out of legs in the vicinity of 1.1030, triggering the subsequent leg lower to the 1.0980 area, where it is now looking to stabilize.

A soft start of the week by the greenback continues to be the exclusive source of the current reticence around the pair. However, EUR/USD still looks vulnerable as dips in the buck not only stay shallow but they also remain well underpinned by rising expectations of a Fed’s rate hike by end 2016.

Absent releases in Euroland today, the market attention will shift to the US calendar, with Building Permits and Housing Starts due later along with the Fed’s Beige Book and speeches by San Francisco Fed J.Williams (2018 voter, neutral), Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral).

EUR/USD levels to watch

The pair is now gaining 0.09% at 1.0989 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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