EUR/USD recovery stalls ahead of 1.1600

• The pair bounces off lows in the 1.1540 area.
• The greenback recedes after clinching tops near 95.70.
• US trade balance figures for the month of July next on tap.

After dropping to fresh lows in the 1.1540 region, EUR/USD has gathered some buying interest and managed to regain the vicinity of 1.1600, where it again run out of steam.

EUR/USD looks to trade, EM

The selling bias around the European currency has picked up pace earlier in the session along with increasing concerns on the EM FX space and usual trade jitters surrounding the US-China dispute.

In fact, outflows from the EM complex into safer assets gave extra wings to the buck in recent days, prompting the US Dollar Index to test fresh tops in the 95.70 region and therefore sending spot to multi-day lows in the 1.1540/30 band.

In the data space, earlier results saw German Services PMI coming in lower than preliminary readings during August, while EMU’s Services PMI matched estimates. Further data showed retail sales in Euroland contracting at a monthly 0.2% in July and expanding 1.1% on a yearly basis, both prints missing consensus.

In the US, trade balance figures for the month of July are coming up next.

EUR/USD levels to watch

At the moment, the pair is up 0.03% at 1.1585 facing the next up barrier at 1.1631 (10-day SMA) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31). On the downside, a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15).