EUR/USD retakes losses, nears 1.09 handle

EUR/USD recovered from the Asian session low of 1.0875 to trade within a striking distance from 1.09 handle after having closed with moderate gains on Tuesday at 1.0887.

Eyes German data

The immediate focus is on German data, which is expected to the import price index dropped 2% y/y in September.  German Gfk consumer confidence is seen unchanged at 10.0 in November. Later in the day, overall demand for the US dollar could be influenced by US advance goods trade balance, Markit services PMI and New Home sales release.

The currency pair closed below 1.09 handle on Friday, but since then has repeatedly rebounded from near 1.0860 levels.

EUR/USD Technical Levels

Breakdown of support at 1.0859 (Friday’s low) would open doors for 1.0822 (Mar 10 low), under which the psychological figure of 1.08 could be put to test. On the higher side, breach of 1.09 (zero figure) could see the spot extend gains to 1.0945 (10-DMA) – 1.0952 (July 25 low). A violation there would expose 1.10 handle.