EUR/USD trims losses, back around 1.0600

EUR/USD has reverted part of the initial negative mood and is now heading back towards the 1.0600 neighbourhood.

EUR/USD attention to data, NFP

The pair is posting its third consecutive week with gains so far, managing to rebound from lows seen over a decade ago in the 1.0340 area (January 3), all sustained by a renewed selling pressure around the buck.

USD has failed to extend the rally further north of the 103.80 area when tracked by the US Dollar Index (Tuesday), sparking the current leg lower which was intensified after the FOMC remarked the significant uncertainty that lingers over the potential policies to be implemented under the Trump’s administration.

On the data front, EMU’s Consumer Sentiment measured by the European Commission is due later, followed by Business Climate, Retail Sales and other sentiment gauges.

In the US, December’s Non-farm Payrolls are expected to come around 180K while the jobless rate is seen at 4.7% from 4.6%. Factory Orders for the month of November are also due ahead of speeches by Chicago Fed C.Evans (voter, dovish) and Richmond Fed J.Lacker (2018 voter, hawkish).

EUR/USD levels to watch

The pair is now losing 0.09% at 1.0594 facing the next support at 1.0483 (20-day sma) followed by 1.0387 (low Jan.4) and finally 1.0350 (2016 low Dec.20). On the flip side, a breakout of 1.0619 (high Jan.6) would target 1.0654 (spike Dec.30) en route to 1.0677 (55-day sma).