EUR/USD lacks momentum

FXStreet (Córdoba) - The EUR/USD advanced a few pips ahead of the Wall Street opening but it is struggling to pick up momentum to extend gains past European session highs.

The EUR/USD rose to the 1.3530 area but lacked follow-through as investors refrain from taking big positions ahead of the key economic events this week, including the ECB policy decision Thursday and the nonfarm payrolls Friday. The EUR/USD has spent the day in a slim range and it was last at 1.3535, virtually unchanged since opening, with 1.3539 (daily high) as immediate resistance to overcome.

EUR/USD technical levels

In terms of technical levels, if the EUR/USD breaks above 1.3540, next resistances are seen at 1.3570 (Jan 31 high) and 1.3595/1.3600 (100-day SMA/psychological level). On the downside, supports could be found at 1.3492 (Feb 4 low) and 1.3476 (Feb 3 low).

US data ahead

"While the week's focus will remain on Friday's nonfarm payrolls following yesterday's disappointing ISM manufacturing print, today's factory orders data will be worth watching for any revisions to last week's weaker durable goods data", said the TD Securities team. "Remarks from Fed's Lacker and Evans will also be worth watching, as will the CBO's release of updated Budget and Economic Outlook projections".

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