- EUR/USD in a small range on a quiet US session ahead of holiday.
- US dollar dropped amid lower US bond yields.
- Data ahead: EZ PMIs on Wednesday, FOMC minutes on Thursday and NFP on Friday.
The EUR/USD pair is about to end the day with modest gains, recovering most of yesterday’s losses. The euro is moving in a range between 1.1640 and 1.1665, holding a modest bullish bias. Price action remains limited as the US enters in a holiday mode. Wall Street is already closed and won’t open tomorrow.
The euro gained ground on the back of a correction of the US dollar and also support by German politics. Chancellor Merkel reached a deal with his coalition partners on immigration. Regarding the US dollar, lower US bond yields weakened the greenback.
EUR/USD peaked at 1.1673 on European hours and then pulled back finding support above 1.1640. It is still below Friday’s close but far from last week multi-month lows.
On Wednesday, data to be release includes Eurozone PMI’s. In the US, on Thursday the FOMC minutes are due and on Friday the NFP report.
EUR/USD Short-term levels
To the upside, immediate resistance is seen at 1.1660/65, followed by 1.1690 and 1.1705. On the flip side, support might lie at 1.1640, 1.1590 and 1.1550.
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