EUR/USD holds onto gains above 1.0600

By FXStreet FXStreet (Córdoba) – EUR/USD spiked to fresh daily highs as the knee-jerk reaction to weaker-than-expected US ISM mfg PMI, although it retraced some of its data-inspired gains over the last minutes.

EUR/USD peaked at 1.0636, roughly at the same level it did on Friday, but quickly returned to pre-data levels as investors look past manufacturing data to focus on the jobs sector. Later this week, the US government will publish November nonfarm payrolls data, the last report before the decisive Fed’s meeting.

But before the NFP, the European Central Bank will decide on monetary policy with consensus pointing for a deposit rate cut or an expansion of the QE programme, or a combination of both.

EUR/USD technical levels

At time of writing, EUR/USD is trading at 1.0613, recording a 0.48% gain on the day. In terms of technical levels, next resistances are seen at 1.0636/37 (Nov 27, Dec 1 highs), 1.0700 (psychological level), 1.0762 (Nov 19 high) and 1.0829 (Nov 12 high). On the flip side, supports could be found at 1.0557 (7-month low Nov 30), 1.0520 (Apr 13 low), 1.0500 (psychological level) and then 1.0462 (2015 low Mar 13).
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Source:: FX Street