EUR/USD looks to gain traction around 1.1600
- Spot managed to bounce off sub-1.1600 levels.
- DXY trading flat around 95.00.
- Markets keep digesting Friday’s payrolls.
The single currency remains under pressure early in the European morning, with EUR/USD hovering over the 1.1600 neighbourhood.
EUR/USD uptick fades near 1.1620
The pair has quickly faded the initial bull run to the 1.1620/25 band amidst a firm greenback following Friday’s payrolls for the month of October.
It is worth mentioning that despite the US economy added less jobs than initially estimated during last month, the labour market remains solid and keeps reinforcing the case for a rate hike by the Federal Reserve at the December meeting.
In the meantime, spot is extending the consolidative tone in the lower end of the recent range, just pips away from October’s lows in the vicinity of 1.1570.
On the positioning front, EUR speculative net longs decreased to the lowest level since September 19 in the week to October 31, as shown by the latest CFTC report.
In the data space, EMU and German final services PMI for the month of October are due seconded by producer prices in the euro area and the Sentix index for the current month. Across the pond, the speech by NY Fed W.Dudley (permanent voter, centrist) will be the only event of note.
EUR/USD levels to watch
At the moment, the pair is up 0.06% at 1.1612 facing the next up barrier at 1.1663 (10-day sma) seconded by 1.1735 (21-day sma) and then 1.1837 (high Oct.26). On the flip side, a break below 1.1575 (low Oct.27) would target 1.1448 (high Jun.30) en route to 1.1272 (200-day sma).