EUR/USD stays under pressure near 1.1340, US ISM coming up
- The pair keeps navigating within a tight range.
- US ISM Non-manufacturing next of relevance.
- Sellers struggle to impose their will below 1.1320.
The selling bias in the single currency stays unchanged so far today, with EUR/USD navigating within a 25-pip range around the critical 200-week SMA.
EUR/USD looks to US data
The prevailing buying pressure around the greenback keeps the pair depressed so far this week, sparking a cent-correction lower from recent 3-week tops in the 1.1420 area (February 28).
The lack of fresh (and positive) news around the US-China trade talks and even on the Brexit front appears to have triggered a cautious tone among investors, while the US political scenario is trying to attempt a comeback with President Trump in the centre of the debate… who else…
Earlier in the session, Services PMIs in Euroland and Retail Sales in the bloc surprised to the upside, although spot has practically ignored the results. Later in the NA session, the IBD/TIPP index is due seconded by the more relevant ISM Non-manufacturing and New Home Sales.
What to look for around EUR
In line with the broader risk-associated complex, the shared currency continues to look to developments from the US-China trade negotiations for near term direction. Looking at the broader picture, the ECB is expected to remain in ‘pause mode’ for the foreseeable future amidst the ongoing slowdown in the region, while investors have practically priced out any up move in rates this year. In addition, political headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be whether the populist choice manages to increase its presence in the Old Continent.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.1326 and faces the next support at 1.1289 (low Jan.24) followed by 1.1234 (2019 low Feb.15) and finally 1.1216 (2018 low Nov.12). On the upside, a breakout of 1.1419 (high Feb.28) would target 1.1442 (38.2% Fibo of the September-November drop) en route to 1.1506 (200-day SMA).