Brocker.Org: EUR/USD stuck below 1.0900, US ISM eyed


After testing the area of 2017 tops near 1.0950 on Friday, EUR/USD has started this week slightly on the defensive and gyrating around the 1.0890 region.

EUR/USD attention to US ISM results

Scarce volatility and flat market activity due to Labor Day holiday are prompting the pair to extend its sideline theme near the 1.0900 neigbourhood following the Asian session on Monday.

Absent a calendar in Euroland, the focus of attention should shift to the US docket, where the ISM Manufacturing will take centre stage seconded by Personal Income/Spending, inflation figures tracked by the PCE (Fed’s preferred gauge) and the speech by Treasury Secretary Steve Mnuchin.

In the meantime, USD-dynamics stay as the main driver behind the pair’s direction in the near term, while risk-on trade seems to prevail ahead of the second round of the French elections on Sunday between E.Macron and M.Le Pen (60%-40%, according to latest polls).

Further news supporting the current momentum in EUR comes from the speculative community, with net shorts retreating to 2-week lows during the week ended on April 25, as seen in the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is losing 0.07% at 1.0888 facing the immediate support at 1.0850 (low Apr.27) seconded by 1.0836 (200-day sma) and finally 1.0805 (23.6% Fibo of the April rally). On the flip side, a break above 1.0949 (high Apr.28) would target 1.0951 (2017 high Apr.25/26) en route to 1.1000 (psychological handle).