EUR/USD holds near lows, searching for catalysts

EUR/USD continues to waver directionless around the 1.1400 level, unable to set fresh short-term direction in the absence of news or events.

EUR/USD stretched to a low of 1.1375 during the European trade, but momentum was lacking either side of the board and the subsequent bounce was capped by the 1.1415 area. At time of writing, the pair was trading at 1.1390, just a few pips lower on the day.

The FX market continues to transit a quiet phase in the absence of new triggers and as investors assess last Friday’s US nonfarm payrolls report. Data showed the US economy added 160K new jobs in April, below the 200K expected, which has raised doubts about an imminent June hike by the Fed.

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.1375 (May 9 low), 1.1353/46 (20-day SMA/Apr 29 low) and 1.1297 (Apr 29 low). On the other hand, resistances line up at 1.1419 (May 9 high), 1.1478 (May 6 high) and 1.1529 (May 4 high).