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EUR/USD soggy around 1.1600, ECB-speak eyed

  • EUR parked around 1.16 on steady markets.
  • USD stays bid on the back on tax reform hopes.
  • Markets attention on ECB-speakers, Yellen.

The sentiment around the single currency remains subdued during the first half of the week, prompting EUR/USD to navigate a tight range around the 1.1600 handle.

EUR/USD: catalysts wanted

The pair remains depressed in the 1.1600 neighbourhood, meandering the area of multi-weeks lows amidst thin trade conditions and absence of relevant data releases in both Euroland and the US.

After breaking below the ‘neckline’ in the 1.1660/70 band following the ECB meeting in late October, the pair stayed unable to regain sustainable traction and instead it is extending the sideline theme around current levels, as traders keep waiting for a more significant catalyst in order to either revert the downside or prolong the leg lower.

In the data space, EMU’s retail sales for the month of September are due along with speeches by ECB’s M.Draghi, S.Lautenschlager, I.Angeloni and D.Nouy. Across the pond, the IBD/TIPP index is due seconded by JOLTs job openings and the speech by Chief J.Yellen.

EUR/USD levels to watch

At the moment, the pair is down 0.11% at 1.1597 facing the next support at 1.1575 (low Oct.27) seconded by 1.1448 (high Jun.30) and finally 1.1276 (200-day sma). On the upside, a breakout of 1.1647 (10-day sma) would open the door to 1.1692 (high Nov.3) and then 1.1728 (21-day sma). Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important resistance zone around 1.1630, where converge the 5-day sma, a pivot point and a Fibo retracement.

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