EUR/USD finds some support around 1.1050

The decline in EUR/USD seems to have found some decent support around 1.1050 for the time being amidst a broad-based recovery in the greenback.

EUR/USD weaker ahead of US elections

Spot keeps the bearish note intact at the beginning of the week, dropping to fresh 3-day lows in the 1.1055/50 band earlier in the European morning although regaining some traction soon afterwards.

USD has taken over sentiment after the FBI stressed it will not take any new actions against Democratic candidate H.Clinton over the handling of confidential information in her emails, giving at the same time fresh legs to the risk appetite trends.

Nothing relevant on the data front today, with only the Fed’s Labor Market Conditions Index due for release after Friday’s Non-farm Payrolls missed expectations during last month at 161K.

In Euroland, Investor’s Confidence tracked by the Sentix index rose to 13.1 for the current month, surpassing estimates, while EMU’s Retail Sales have contracted 0.2% MoM in September.

Additionally, EUR speculative net shorts have increased to the highest level since mid-January at over 137K contracts during the week ended on November 1, according to the latest CFTC report.

EUR/USD levels to watch

The pair is now down 0.66% at 1.1067 with the immediate support at 1.0850 (low Oct.25) followed by 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the flip side, a breakout of 1.1146 (high Nov.4) would target 1.1186 (200-day sma) and then 1.1191 (6-month resistance line).

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