EUR/USD recedes from tops near 1.1750

The European currency clings to its daily gains on Monday, with EUR/USD now giving away some pips after hitting session peaks near 1.1750.

EUR/USD supported near 1.1660

After testing fresh lows near the critical 1.1660 area (August’s low) in the wake of US payrolls on Friday, the pair staged a moderate rebound and it has not only regained the 1.1700 handle but has also managed to clinch tops in the vicinity of 1.1750 today.

Spot keeps looking to US yields for direction, particularly the 10-year benchmark, which failed to advance further south of the key 2.40% level on Friday. However, US bonds markets will stay close today due to Columbus Day holiday, draining the pair off its usual volatility.

In the data space, German industrial production came in above consensus in August, while EMU’s investor confidence tracked by the Sentix index surpassed estimates at 29.7 for the current month.

Still in the euro area, speculators have increased their EUR net longs to fresh 4-week tops in the week ended on October 3, according to the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.1734 facing the next resistance at 1.1754 (10-day sma) followed by 1.1835 (55-day sma) and finally 1.1847 (21-day sma). On the other hand, a break below 1.1686 (low Oct.6) would target 1.1662 (low Aug.17) en route to 1.1601 (100-day sma).