EUR/USD meets resistance near 1.1080 ahead of data

• Upside in EUR/USD met resistance around 1.1080.
• The 100-day SMA at 1.1091 caps the recovery so far.
• EMU Current Account, Construction Output next on the docket.

The recovery in EUR/USD appears to have met an important resistance in the 1.1080 region so far on Tuesday, coincident with the 21-day SMA.

EUR/USD looks to USD dynamics, trade

The positive streak in the pair is struggling to overcome the key 1.1080/90 region so far this week on the back of some pick up in the demand for the greenback.

In fact, higher US yields appear to be supporting the mild bullish attempt in the buck and therefore forcing spot to abandon the area of recent tops around 1.1080. this relevant barrier is also reinforced by the 21-day and 100-day SMAs at 1.1081 and 1.1091, respectively.

Investors continue to look to the US-China trade front for near term direction, although sentiment around this key issue soured as of late in response to the lack of progress in the ‘Phase One’ deal and after President Trump said he would not favour the rollover of some tariffs.

Data wise in Euroland, September’s Current Account results are due ahead of less relevant Construction Output figures. In the meantime, all the attention remains on the publication of the ECB minutes, the speech of ECB’s Lagarde and the first estimates of November’s PMIs.

Across the pond, Housing Starts and Building Permits will be the sole releases later today.

What to look for around EUR

Spot is prolonging the rebound from last week’s lows in sub-1.10 levels, always underpinned by the renewed weakness around the greenback and hopes of a US-China trade deal. The up move, however, seems to have met a tough hurdle in the 1.1080/90 band for the time being. On the macro view, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In this regard, all the attention will be on the publication of flash PMIs for the current month later in the week.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.1069 and faces the next up barrier at 1.1081 (high Nov.19) followed by 1.1091 (100-day SMA) and finally 1.1179 (monthly high Oct.21). On the downside, a breach of 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1).