EUR/USD testing 1.0720 post-US data

The single currency found some bids following US data releases, sending EUR/USD to the 1.0715/20 band.

EUR/USD supported near 1.0690

The pair is managing to keep the trade above the 1.0700 handle after US Producer Prices have come in below expectations during October, somewhat hampering today’s upside momentum around the buck.

Despite the poor data, the bullish stance in USD remains broadly constructive above the psychological handle at 100.00, with the US Dollar Index climbing to fresh yearly peaks near 100.60 in early trade.

Still in the US, Industrial and Manufacturing Production are due later  followed by the NAHB index, Capacity Utilization and the EIA’s weekly report on crude inventories. In addition, Philly Fed P.Harker (2017 voter, hawkish) is also due to speak.

EUR/USD levels to watch

The pair is now retreating 0.06% at 1.0718 and a breakdown of 1.0688 (2016 low Nov.16) would target 1.0538 (low Dec.3 2015) en route to 1.0519 (low Apr.13 2015). On the flip side, the immediate resistance lines up at 1.0826 (high Nov.14) followed by 1.0848 (low Oct.25) and finally 1.0941 (20-day sma).

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