- The pair is up smalls amidst generalized cautious trade.
- The greenback recedes some ground following Friday’s advance.
- Final inflation figures in Euroland, US Empire State index next on tap.
EUR/USD is clinging to its daily gains at the beginning of the week around the 1.1630 region following Friday’s rejection from tops in the 1.1720 area.
EUR/USD looks to data, trade
The cautious trade dominates the sentiment among traders on Monday, as all eyes remain upon the US-China trade front, where fresh US tariffs (and Chinese retaliation) could be announced any time later in the week.
On the USD-side, the US Dollar Index is shedding some ground after the recent test of tops in the 95.00 neighbourhood, leaving behind the poor results from inflation figures for the month of August and instead refocusing on the trade and Fed’s tightening.
Looking ahead, final CPI figures in the euro area for the month of August are due later in the European morning ahead of the NY Empire State index.
From the speculative community, EUR net longs climbed to 2-week tops in the week ended on September 11, according to the latest CFTC report.
EUR/USD levels to watch
At the moment, the pair is up 0.09% at 1.1633 and a breakout of 1.1724 (high Sep.14) would open the door to 1.1745 (high Jul.31) and finally 1.1792 (high Jul.9). On the other hand, the next support lines up at 1.1617 (21-day SMA) followed by 1.1526 (low Sep.10) and then 1.1508 (low May 29).
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