EUR/USD clings to gains around 1.1090

• EUR/USD recedes from recent tops beyond 1.1100.
• DXY remains depressed near 97.50 on data, trade.
• German Factory Orders contracted 0.4% MoM in October.

The single currency is trading marginally into the positive territory in the second half of the week, taking EUR/USD to the 1.1090 region in the wake of the opening bell in Euroland.

EUR/USD retreats from 4-week highs

The pair has given away part of the recent gains after failing to extend the rally beyond the 1.1115/20 band on Wednesday.

As usual, the persistent weakness surrounding the greenback in response to the better tone in the US-China trade front, declining US yields and poor prints from the US calendar has been behind the ongoing rally in spot.

In the euro-docket, German Factory Orders contracted at a monthly 0.4% during October, coming in short of expectations at the same time and reversing the September’s 1.5% expansion.

Later in the day, the Eurogroup Meetings should kick in seconded by the final readings of the Q3 GDP in the broader euro area along with October’s Retail Sales. Across the pond, the weekly Initial Claims are due followed by Challenger Job Cuts, Factory Orders, Durable Goods Orders and Trade Balance.

What to look for around EUR

The pair has finally broken above the key barrier at 1.1100 the figure amidst the continuous bearish note in the greenback and the comeback of US-China trade tensions, although it could not sustain the break and returned to the comfort zone around 1.1080/90. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany and the euro bloc as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.

EUR/USD levels to watch

At the moment, the pair is gaining 0.09% at 1.1087 and faces the next hurdle at 1.1116 (monthly high Dec.4) seconded by 1.1158 (200-day SMA) and finally 1.1179 (monthly high Oct.21). On the other hand, a breakdown of 1.1067 (100-day SMA) would target 1.1042 (55-day SMA) en route to 1.0989 (monthly low Nov.14).