The upbeat momentum in the common currency now seems to be taking a breather, allowing EUR/USD to re-test the 1.1200 handle and below.
EUR/USD firmer, US Factory Orders on sight
The pair has quickly surpassed the 1.1200 mark against the backdrop of increasing selling bias around the dollar. However, the up-move run out of legs in the mid-1.1200s for the time being, allowing the ongoing correction lower.
In the meantime, the greenback continues to suffer disappointing results in the US docket along with dwindling expectations of another rate hike by the Fed at its March meeting.
Ahead in the NA session, December’s Factory Orders are due (-2.8% exp.), seconded by the speech by Loretta Mester, President of the Federal Reserve Bank of Cleveland.
EUR/USD levels to watch
The pair is now advancing 0.70% at 1.1185 facing the next hurdle at 1.1240 (high Feb.4) ahead of 1.1496 (high Oct.15) and finally 1.1713 (post-PBoC high Aug.24). On the downside, a breach of 1.1054 (200-day sma) would open the door to 1.0906 (20-day sma) and finally 1.0777 (post-ECB low Jan.21).
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