- The pair trades on the defensive in the low-1.1400s.
- The greenback remains sidelined below 95.90 ahead of ISM.
- Final Services PMIs, Retail Sales next on tap in Euroland.
The selling mood around the European currency remains well and sound so far this week, taking EUR/USD to the 1.1430 region, down smalls for the day.
EUR/USD focused on data
The pair is prolonging the pessimism in the first half of the week against the backdrop of a better tone in the greenback, particularly following auspicious results from US Payrolls and ISM manufacturing (Friday).
In fact, upbeat figures from the US docket on Friday lifted the sentiment in the risk-associated complex, pushing stocks higher and prompting investors to dump safer assets.
Moving forwards, final Services PMIs are due later in Euroland as well as Retail Sales figures in the broad bloc for the month of December. Across the pond, the center of attention will be on the publication of the ISM Non-manufacturing, the IBD/TIPP index and the weekly report by the API.
What to look for around EUR/USD
The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP, while higher-than-expected advanced CPI figures in January appear to have sparked some optimism among investors. On the political side, the upcoming EU parliamentary elections (May) should start to gather extra interest, always with a close eye on the potential advance of populist views among members.
EUR/USD levels to watch
At the moment, the pair is losing 0.08% at 1.1427 and a break below 1.1419 (10-day SMA) would target 1.1406 (low Jan.30) en route to 1.1392 (55-day SMA). On the other hand, the next hurdle emerges at 1.1514 (high Jan.31) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9).
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