EUR/USD extends the sideline around 1.0860, Fedspeak on sight

The single currency keeps the consolidative theme intact so far today, with EUR/USD hovering over the 1.0860 area.

EUR/USD focus on US data, Fedspeak

Spot has deflated from recent multi-month highs just above 1.0900 the figure against a backdrop of some profit taking and a mild recovery of the greenback.

The pair has been boosted at the beginning of the week after House Republican voted against the American Health Care Act bill (known as ‘Trumpcare’) last Friday, sparking a wave of risk aversion and a sharp sell-off in USD.

The US Dollar Index (DXY) has plummeted to fresh 4-month lows to test the vicinity of the key 200-day sma ahead of the critical 10-month support line, today at 98.26, although it has managed so far to retake the 99.00 handle and above.

Data wise in the US docket, Consumer Sentiment gauged by the Conference Board is due seconded by Goods Trade Balance and the S&P/Case-Shiller index. In addition, Chief J.Yellen, J.Powell (permanent voter, centrist), KC Fed E.George (2019 voter, hawkish) and Dallas Fed R.Kaplan (voter, hawkish) are all due to speak later in the NA session.

EUR/USD levels to watch

At the moment the pair is down 0.10% at 1.0854 and a breakdown of 1.0794 (low Mar.27) would target 1.0759 (low Mar.24) en route to 1.0704 (low Mar.16). On the flip side, the initial hurdle stays at 1.0905 (high Mar.27) followed by 1.0933 (61.8% Fibo of 1.1300-1.0339) and finally 1.1094 (78.6% Fibo of 1.1300-1.0339).