The European currency has started the week on a negative note and is now forcing EUR/USD to recede to the 1.1440 region, home of the 100-day SMA.
EUR/USD now focused on data
Spot appears to be consolidating in the lower bound of the recent range, with the key 100-day SMA providing strong support for the time being.
In the meantime, market participants continue to digest the recent publication of the monthly report on the US labour market, where the economy added more jobs than initially estimated in January (304K), although inflation pressure via wages eased somewhat.
Looking ahead in Euroland, Investor Confidence tracked by the Sentix index is next on tap seconded by Producer Prices for the month of December. Across the pond, November’s Factory Orders will be the only release of note.
What to look for around EUR/USD
The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP, while higher-than-expected advanced CPI figures in January appear to have sparked some optimism among investors. On the political side, the upcoming EU parliamentary elections (May) should start to gather extra interest, always with a close eye on the potential advance of populists views among members.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.1441 and a break below 1.1425 (21-day SMA) would target 1.1412 (10-day SMA) en route to 1.1406 (low Jan.30). On the other hand, the next hurdle emerges at 1.1514 (high Jan.31) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9).