EUR/USD clings to gains near 1.1380 on US data

• The pair trades within the daily range post-US data.
• The greenback fades the uptick to the 97.00 area.
• US Core PCE rose 1.8% YoY in October, below consensus.

EUR/USD retakes the positive territory today although a breakout of the critical 1.1400 area still remains elusive.

EUR/USD bid after US data

Spot briefly tested and once again failed to break above the 1.1400 barrier today despite key US inflation figures tracked by the PCE failed to meet investors’ expectations.

In fact, PCE rose at an annualized 1.8% and 0.1% MoM during October, both prints coming in below forecasts. Further US data saw Initial Claims rising by a weekly 234K, while Personal Income rose 0.5% MoM and Personal Spending expanded 0.6% MoM, both above consensus.

Previously, German advanced CPI showed consumer prices are seen rising 2.3% on a yearly basis and 0.1% inter-month in November, also missing expectations.

Later in the NA session, October’s Pending Home Sales is due ahead of the FOMC minutes. The greenback is expected to stay under pressure as investors will closely follow the Committee’s view on rates in light of recent dovish comments from Chief J.Powell.

EUR/USD levels to watch

At the moment, the pair is gaining 0.07% at 1.1374 and a break above 1.1402 (high Nov.29) would target 1.1434 (high Nov.22) en route to 1.1473 (high Nov.20). On the downside, the next support is located at 1.1267 (low Nov.28) followed by 1.1214 (2018 low Nov.12) and finally 1.1188 (61.8% Fibo of the 2017-2018 rally).