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EUR/USD consolidates around hourly 50-SMA, German IP eyed

FXStreet (Mumbai) - Having failed another attempt to regain 1.09 barrier, the EUR/USD pair drifted slightly lower and extends its consolidative mode around the hourly 50-SMA placed at 1.0884.

EUR/USD rejected at 1.0894 levels

The EUR/USD pair trades almost unchanged at 1.0883, retreating from session posted at 1.0894 levels. The main currency pair treads water below 1.09 handle, as markets prefer to remain on the side-lines ahead of main risk event, the US jobs data, due for release later in the NY session.

The recent hawkish Fed speaks coupled with upbeat US fundamentals have provided the much-need impetus to the USD bulls, dragging EUR/USD to the lowest levels since July. Adding to this, ECB Draghi’s ready to act stance at its Dec gathering has also fuelled the downside in the major.

Markets await the US NFP numbers to confirm a Dec Fed rate hike, with fed funds futures already reflecting the odds for the rate hike in December to have sharply risen above 60%.

Meanwhile, the German industrial production data and a couple of speeches from ECB members will keep the EUR traders busy in the European session ahead.

EUR/USD Technical Levels

The pair remains below 1.09 handle with the next hurdle in sight at 1.0922 (5-DMA) from there to 1.0958/67 (10-DMA/ Nov 4 High). While to the downside, the immediate support is seen at 1.0842/32 (Nov 4 & 5 low). Selling pressure will intensify below the last, dragging the pair towards 1.0805/00 (daily S2/ psychological levels).

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