EUR/USD loses shine, returns below 1.1100

The common currency has now abandoned the area of session highs near 1.1130 vs. the buck, prompting EUR/USD to recede towards the 1.1080 region.

EUR/USD focus on BoE, US data

The pair has faded the earlier spike to the 1.1125/30 band, or 3-week tops, returning to the negative territory as the greenback continues to cut losses and EUR/GBP remains in free-fall in response to a wave of buying pressure around the Sterling.

Spot is losing ground for the first time after two consecutive advances, always backed by the instability and rising uncertainty hovering over the US political arena in light of the upcoming presidential elections, all morphing into extra selling pressure for USD.

On the data front, markets paid scarce attention, if any, to EMU’s unemployment rate, which stayed put at 10.0% during September. Across the pond, Initial Claims are due followed by Markit’s Services PMI, the more relevant ISM Non-manufacturing and September’s Factory Orders.

EUR/USD levels to watch

The pair is now losing 0.21% at 1.1075 and a break below 1.0850 (low Oct.25) would aim for 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the upside, the next resistance is located at 1.1126 (high Nov.3) followed by 1.1188 (200-day sma) and then 1.1198 (6-month resistance line).

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