EUR/USD surrenders gains, back below 1.11

The initial upside momentum in the single currency seems to be fading now, sending EUR/USD back to the 1.1090/85 band.

EUR/USD gains limited above 1.1100

Spot is now deflating from overnight tops above the 1.1100 handle following a continuation of the bid tone around the US dollar, while market participants continue to digest last Friday’s strong Payrolls figures.

Previously on the German data front, Industrial Production expanded more than initially estimated 0.8% on a monthly basis during June, reverting May’s 0.9% contraction. 

Across the pond, the Fed’s Labor Market Conditions Index is only expected later in the NA session.      

EUR/USD levels to watch

The pair is now up 0.03% at 1.1088 facing the initial resistance at 1.1152 (55-day sma) ahead of 1.1236 (high Aug.2) and then 1.1263 (50% Fibo of the May-June down move). On the other hand, a breach of 1.0950 (low Jul.25) would target 1.0913 (post-Brexit low Jun.24) en route to 1.0820 (low Mar.10).