EUR/USD extends the breakout of 1.1100

The bid tone around the shared currency remains well and sound so far this week, with EUR/USD advancing further north of the 1.1100 handle.

EUR/USD focus on US data

Yesterday’s FOMC meeting resulted in a ‘non event’ when comes to reaction in the FX space, as the Committee argued the case for a rate hike ‘has continued to strengthen’ while it remains ‘data-dependent’ regarding the timing of the next move by the Fed.

The pair’s price action remains exclusively driven by USD-dynamics, with the US political scenario in the centre of the debate, as the outcome of the upcoming presidential elections remains unclear. Spot has managed to recover most of the drop seen in October, facing the next hurdle at the 61.8% Fibo retracement at 1.1160.

Data wise in Euroland, the ECB will publish its Economic Bulletin followed by EMU’s unemployment rate for the month of September.

Across the pond, Initial Claims are due followed by Markit’s Services PMI, the more relevant ISM Non-manufacturing and September’s Factory Orders.

EUR/USD levels to watch

The pair is now up 0.20% at 1.1120 with the next hurdle at 1.1139 (55-day sma) followed by 1.1188 (200-day sma) and then 1.1198 (6-month resistance line). On the other hand, a break below 1.0850 (low Oct.25) would aim for 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5).