- The pair is down smalls and challenges the 1.1500 support.
- The greenback keeps the narrow trade in the upper-95.00s.
- US September Non-farm Payrolls the salient event today.
It seems EUR/USD has resumed the downside at the end of the week, reverting yesterday’s advanced and returning to the 1.1500 area ahead of the European opeining.
EUR/USD looks to US data
Concerns on Italian politics eased somewhat on Thursday and allowed spot to rebound from recent lows in the 1.1460 region. In addition, news citing the ECB was discussing its reinvestment policy also lent some support to the single currency.
However, the bull run met strong resistance in the 1.1540/45 band, forcing the pair to recede to the current 1.1500 zone.
In the meantime, spot is expected to remain under pressure amidst rising US yields while further rangebound should be seen ahead of the release of US Non-farm Payrolls for the month of September.
Earlier in the session, German Factory Orders expanded 2.0% MoM during August, surpassing estimates. In addition, Producer Prices rose more than expected 0.3% inter-month during the same period and 3.1% on a yearly basis.
EUR/USD levels to watch
At the moment, the pair is losing 0.09% at 1.1505 facing the next support at 1.1463 (low Sep.4) seconded by 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the flip side, a break above 1.1542 (high Oct.4) would target 1.1613 (10-day SMA) en route to 1.1637 (21-day SMA).
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