- Spot eroded the initial spike to tops around 1.1380.
- The greenback stages a rebound beyond the 97.00 handle.
- US ISM Manufacturing and Fedspeak next of relevance.
The demand for the European currency stays subdued at the beginning of the week, motivating EUR/USD to leave behind earlier tops and retreat to the 1.1330/20 band.
EUR/USD now focused on data, Fedspeak
Sellers emerged around daily highs in the 1.1380 region and forced spot to abandon that area and retreat to lows in the 1.1330/20 zone, where some decent support appears to have emerged.
In the meantime, the initial optimism in the riskier assets following the US-China 90-day trade truce has almost evaporated, putting that universe under renewed downside pressure.
Ahead in the day, the always-critical ISM Manufacturing is due along with speeches by FOMC’s Quarles, Brainard and Williams. Earlier in the session, FOMC’s VP R.Clarida said the Fed’s ‘dots plot’ is not going anywhere, while Dallas Fed R.Kaplan urged caution when comes to further rate hikes.
EUR/USD levels to watch
At the moment, the pair is up 0.17% at 1.1336 and a breakout of 1.1401 (high Nov.29) would target 1.1434 (high Nov.22) en route to 1.1473 (high Nov.20). On the flip side, the next support emerges 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).
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