EUR/USD keeps the tight range near 1.09 ahead of US ISM

The single currency has bounces off session lows near 1.0880 vs. the buck, with EUR/USD now assaulting the key barrier at 1.0900 the figure.

EUR/USD now looks to US ISM

The pair remain within a narrow trading range at the beginning of the week, hovering over the 1.0900 key handle and coming down from last week’s fresh YTD peaks around 1.0950.

EUR stays supported as well by the speculative community, with speculative net shorts retreating to 2-week lows during the week ended on April 25, as seen in the latest CFTC report.

In the meantime, USD-dynamics stay as the main driver behind the pair’s direction in the near term, while risk-on trade seems to prevail ahead of the second round of the French elections on Sunday between E.Macron and M.Le Pen (60%-40%, according to latest polls).

In the data space, markets in Euroland stay closed due to the Labor Day holiday, whereas the ISM Manufacturing, Personal Income/Spending, inflation figures tracked by the PCE (Fed’s preferred gauge) and the speech by Treasury Secretary Steve Mnuchin are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.0898 and a break above 1.0949 (high Apr.28) would target 1.0951 (2017 high Apr.25/26) en route to 1.1000 (psychological handle). On the flip side, the immediate support aligns at 1.0850 (low Apr.27) seconded by 1.0836 (200-day sma) and finally 1.0805 (23.6% Fibo of the April rally).