EUR/USD continues to recover, flirting with 1.0900

The now offered bias around the greenback is allowing EUR/USD to regain the 1.0900 neighbourhood after dropping to 1.0860 in early trade.

EUR/USD firmer ahead of US data, Fedspeak

Spot finds some relief after market participants seem to be cashing up part of recent strong gains in USD, propping up the ongoing correction higher to the vicinity of 1.0900 the figure.

EUR has also found support in the auspicious results from advanced Manufacturing and Services PMIs in the region for the current month, collaborating with the pair’s upside.

Next on tap for the pair will be October’s flash Manufacturing PMI measured by Markit and the Chicago Fed National Activity index, along with speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral).

On the data front, EUR speculative net shorts have increased to the highest level since late July, with shorts back to levels last seen in early November 2014 and longs up to levels seen in January 2012.

EUR/USD levels to watch

The pair is now up 0.13% at 1.0896 facing the next resistance at 1.0952 (2014-2016 resistance line) followed by 1.1009 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).