EUR/USD pierces 1.1000 on upbeat US data

• EUR/USD briefly moves below the 1.10 handle.
• Advanced GDP grew 2.1% on a yearly basis in Q3.
• US Durable Goods Orders expanded more than expected.

EUR/USD is now flirting with the 1.10 handle following a moderate rebound in the greenback.

EUR/USD weaker post-data

Spot has quickly faded the move to the area of session tops in the 1.1010/15 band in response to better-than-expected results from the US docket.

In fact, US yields broke above the daily consolidative theme and reached the 1.78% area, helping at the same the buck to rebound from session lows, all after another estimate of the US GDP showed the economy is seen expanding at an annualized 2.1% during the July-September period, surpassing initial forecasts.

In addition, Durable Goods Orders expanded at a monthly 0.6% during October, reversing September’s 1.4% contraction. Additional US data also saw Initial Claims rising by 213K WoW, while PCE, Personal Income/Spending and the Chicago PMI are all due later.

What to look for around EUR

Spot has been rejected from the vicinity of the 1.1100 barrier once again last week, sparking a corrective downside to the 1.10 neighbourhood, which continues to act as a solid contention area. As always, EUR is expected to keep tracking trade headlines and USD-dynamics for the time being. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.

EUR/USD levels to watch

At the moment, the pair is retreating 0.19% at 1.0999 and a breakdown of 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1). On the flip side, the initial hurdle aligns at 1.1097 (monthly high Nov.21) followed by 1.1167 (200-day SMA) and finally 1.1179 (monthly high Oct.21).