EUR/USD upside falters near 1.0940, US data eyed

After climbing as high as the 1.0940 region, EUR/USD seems to have run out of steam and is now receding to the 1.0930/20 band.

EUR/USD focus on US data

The earlier sell off in the greenback allowed the pair to quickly revert the drop to daily lows in the 1.0870 region, advancing to the region of session peaks in the vicinity of 1.0940.

On the USD-side, a wave of selling orders forced the buck – in terms of the US Dollar Index (DXY) – to abandon the area of 99.35 and re-visit lows in the boundaries of 98.90.

In the data space, EMU’s Retail Sales have come in above expectations in March, expanding at a monthly 0.3% and 2.3% over the last twelve months. Across the Atlantic, the usual weekly report on the US labour market is due, seconded by Trade Balance figures and Factory Orders during March.

Earlier in the session, ECB’s P.Praet said wage growth in the bloc need to be stronger to achieve a sustained adjustment in inflation, while he showed some satisfaction as the recovery is broadening across countries.

EUR/USD levels to watch

At the moment, the pair is advancing 0.37% at 1.0926 and a break above 1.0941 (high May 4) would target 1.0951 (2017 high Apr.25) en route to 1.1300 (high Nov.9 2016). On the flip side, the immediate support aligns at 1.0880 (low May 3) followed by 1.0850 (low Apr.27) and finally 1.0834 (200-day sma).