EUR/USD finds support near 1.1170 ahead of US docket

EUR/USD found decent support in the 1.1170 area on Monday, currently looking to regain the 1.1185/90 band.

EUR/USD now looks to US data

The pair is retreating for the second consecutive session today, shedding nearly 2 cents since Friday’s spike to the mid-1.1300s, all against the backdrop of a continuation of the bid tone around the greenback, especially after the recent speech by Chief Yellen.

Regarding positioning, speculative net shorts have been trimmed to the lowest level since July 12, according to the latest CFTC report.

Next on tap in the US docket will be the key inflation figures tracked by the PCE (Fed’s favourite measure), followed by July’s Personal Income/Spending and Dallas Fed Manufacturing index.

EUR/USD levels to watch

The pair is now losing 0.12% at 1.1182 and a breakdown of 1.1153 (55-day sma) would open the door to 1.1119 (200-day sma) and finally 1.1043 (low Aug.5). On the other hand, the next hurdle lines up at 1.1357 (high Aug.23) followed by 1.1367 (high Aug.18) and then 1.1434 (high Jun.24).