EUR/USD rangebound post-US data, now looks to NFP
- Spot keeps daily gains and navigates the area around 1.1980.
- USD remains offered around the 92.40 area amidst lower US yields.
- US trade deficit shrunk to $49 billion in March.
EUR/USD keeps the bid tone intact during the second half of the week and navigates the familiar range near 1.1980.
EUR/USD supported near 1.1940
The pair is now seeing some light at the end of the tunnel, posting moderate gains after three daily pullbacks in a row. However, the renewed bearish trend appears unchanged for the time being, particularly following the recent breakdown of the multi-month 1.2555-1.2155 range.
In the meantime, the greenback keeps correcting lower after yesterday’s fresh 2018 tops in the 92.80 region, all amidst a decent decline in yields of the US 10-year benchmark to the region of fresh lows in sub-2.95% levels.
In the data space, EMU’s flash inflation figures came in below estimates for the month of April. In the US, March’s trade balance narrowed to $49.00 billion and
Initial Claims rose by 211K during last week, both prints surprising to the upside.
Later in the session, US Durable Goods Orders and Factory Orders are due preceding the more relevant ISM Non-manufacturing.
EUR/USD levels to watch
At the moment, the pair is up 0.23% at 1.1979 and a break above 1.2033 (high May 2) would target 1.2113 (10-day sma) en route to 1.2210 (high Apr.26). On the other hand, the immediate support lines up at 1.1938 (low May 2) seconded by 1.1916 (2018 low Jan.19) and finally 1.1718 (monthly low Dec.12 2017).