EUR/USD - in search of a firm direction, range-bound above mid-1.1800s
• Sideways within previous session’s trading range.
• Modest USD/US bond yields uptick capping gains.
• US data eyed for short-term trading opportunities.
The EUR/USD pair quickly reversed a dip to 1.1840 level and has managed to bounce off around 20-25 pips from session tops.
The pair had a good two-way move within previous session's trading range and lacked any firm directional bias amid a combination of diverging factors. Today's mixed Euro-zone economic data did little to provide any fresh impetus, while a modest pickup in the US Dollar demand, supported by a goodish uptick in the US Treasury bond yields, capped any meaningful up-move.
Traders now look forward to the US economic docket, featuring the release of trade balance data and ISM non-manufacturing PMI would now be looked upon for some impetus.
Meanwhile, the recent price action clearly seems to suggest that traders remained reluctant to place aggressive bets and want to wait for a fresh trigger before positioning for the next leg of directional move.
Hence, Friday's keenly watched US monthly jobs report, popularly known as NFP, might now act a key determinant of the pair's near-term trajectory.
Technical levels to watch
Sustained weakness below 1.1840 level is likely to accelerate the slide towards the 1.1800 handle before the pair eventually aims towards testing its next support near mid-1.1700s. On the upside, any bullish momentum is likely to confront fresh supply near the 1.1900 handle and is closely followed by the 1.1920-25 supply zone.