EUR/USD trades narrowly close to 1.1000 for now
The pair is in a bit of a tricky spot right now as it continues to trade around key support at 1.0990-00. The 29 November low @ 1.0981 is also one to watch as a break below these levels paves the way for a move towards 1.0900.
The more dismal German factory orders report earlier wasn't enough to give sellers conviction for a nudge lower, but I reckon it may not take much if price action continues to linger around these levels as we look towards the end of the week.
Although we are observing more risk-on sentiment this week, buyers have failed to defend the upside momentum from the end of last week - granted it was due to month-end flows.
But unless there is some other form of positive catalysts for the euro to gain, the pair looks vulnerable to a firm break below 1.1000 in the near-term.
The risk for sellers will be a move back towards the key hourly moving averages. The 200-hour moving average will be the first test @ 1.1032 in that regard.
