EUR/USD flirting with lows near 1.0610

The better tone around the greenback has prompted EUR/USD to recede from recent highs and test the lower end of the range in the 1.0615/10 band.

EUR/USD weaker ahead of data

The upside momentum in the pair seems to have fizzled out in the mid-1.0600s for the time being, as the ‘sell on rallies’ stance remains well and sound among market participants.

The recent bull run is probing to be short-lived as expected, while expectations of a Fed’s move by year-end and prospects of higher inflation on potential looser fiscal policies under Trump’s presidency all stay supportive of a stronger buck.

On the data front, advanced November’s Consumer Confidence in the euro area measured by the European Commission is only due later, along with US Existing Home Sales and the regional manufacturing gauge tracked by the Richmond Fed.

Adding to the underlying bearish tone around EUR, speculative net shorts have receded to 4-week lows during the week ended on November 15, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now losing 0.08% at 1.0622 and a break below 1.0567 (2016 low Nov.18) would aim for 1.0538 (low Dec.3 2015) and then 1.0519 (low Apr.13 2015). On the other hand, the initial resistance aligns at 1.0652 (high Nov.21) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14).