- EUR/USD stays parked around the 1.0960 region.
- The Greenback puts 99.00 under pressure.
- US ISM Non-manufacturing next of significance.
EUR/USD remains orbiting the 1.0960 region on Thursday, keeping the trade within a narrow range so far.
EUR/USD focused on US releases
The pair looks to maintain the recovery alive today, flirting with the 10-day SMA in the 1.0960 region although with gains capped in the 1.0970/75 band for the time being.
Earlier in the euro area, final Services PMIs unexpectedly came in on a weaker tone for the month of September, while Producer Prices in the broader euro region contracted more than expected; Retail Sales posted mixed results during August.
In the meantime, the sentiment around the buck keeps deteriorating against the backdrop of declining yields and the continuation of the recovery in rivals such as EUR, GBP and JPY.
Later, all the attention will be on the US ISM Non-manufacturing, Durable Goods Orders and Factory Orders.
What to look for around EUR
The pair keeps the weekly recovery well and sound so far today, retaking levels well above the 1.09 barrier on the back of increasing selling pressure hitting the Greenback. The up move in the pair, however, is seen as corrective only, as the slowdown in the region stays far from abated and carries the potential to deteriorate further, as per the latest PMIs in core Euroland and despite the lacklustre improvement in a couple of German sentiment gauges. Speaking of Germany, the likeliness that the country could slip back into recession in the third quarter just adds to the already gloomy panorama for the bloc and weighs further on the single currency. The unremitting slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics adds to the ongoing concerns.
EUR/USD levels to watch
At the moment, the pair is advancing 0.02% at 1.0961 and faces the next resistance at 1.1000 (21-day SMA) followed by 1.1109 (monthly high Sep.13) and finally 1.1163 (high Aug.26). On the downside, a breakdown of 1.0879 (2019 low Oct.1) would target 1.0839 (monthly low May 11 2017) en route to 1.0569 (monthly low Apr.10 2017).
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