EUR/USD treading water above 1.1200, waits for Fedspeak

The common currency keeps its buoyancy intact at the end of the week, with EUR/USD now looking to stabilize in the 1.1220/30 band, or daily peaks.

EUR/USD looks to Fedspeak for direction

Spot keeps navigating in a narrow range on Friday, finding some decent support around the 1.1200 neighbourhood while the upside appears so far limited near 1.1230.

Mixed prints from PMIs in Euroland showed the Manufacturing sector is expected to fare better than its Services peer during September, although the pair paid little to none attention to the results.

On the other side, the greenback seems to have found some respite in light of the recent and deep pullback, looking for direction in the mid-95.00s when tracked by the US Dollar Index.

Ahead in the day, speeches by Philly Fed P.Harker (2017 voter, hawkish?), Atlanta Fed D.Lockhart (2018 voter, centrist) and Cleveland Fed L.Mester (voter, centrist/hawkish) will give back the attention to USD and could put the pair’s upside momentum to the test.

EUR/USD levels to watch

The pair is now losing 0.04% at 1.1212 facing the next support at 1.1119 (low Sep.21) followed by 1.1043 (low Aug.5) and then 1.0950 (low Jul.25). On the other hand, a break above 1.1258 (high Sep.22) would aim for 1.1279 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).