EUR/USD consolidates near 1.0630 ahead of ISM

The softer tone in the greenback is not giving signs of alleviating so far, now taking EUR/USD to the area of 1.0630 ahead of US ISM.

EUR/USD still firm, US ISM eyed

The pair keeps the daily upside well and sound during the European afternoon, keeping the composure after US Initial Claims climbed to 268K WoW, missing consensus for a 253K gain and taking the 4-Week Average to 251.00K from 251.50K.

Spot has recovered the smile after yesterday’s retracement, although a sustainable break above the tough resistance band in the mid-1.0600s still remains elusive despite the ongoing offered bias around the buck, all adding to the current and broader sideline theme.

On the data front, manufacturing PMIs in Euroland have come in mixed, while the unemployment rate in the region has eased to 9.8% during October, bettering forecasts.

Across the pond, USD will take centre stage once again following the release of the always-critical ISM Manufacturing, seconded by Markit’s Manufacturing PMI.

EUR/USD levels to watch

The pair is now up 0.38% at 1.0632 and a break above 1.0685 (high Nov.28) would target 1.0700 (23.6% of the November drop) en route to 1.0820 (low Mar.10). On the flip side, the immediate support aligns at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003).