All eyes on US-China trade talks scheduled for Wednesday

The upside momentum in EUR/USD now appears to be taking a breather after the earlier spike to fresh monthly tops in the 1.1030/35 band.The persistent weakness hurting the Greenback has boosted the pair to monthly highs in the 1.1030 region, where it seems to have meet a tough resistance for the time being.EUR is also deriving support from the moderate rebound in European yields, where the German 10-year reference is now hovering around the -0.5% region. The better tone in German yields reduced their spread differential vs. the US peers to 210 pts, also collaborating with the pair’s up move.In the docket, US inflation figures measured by the CPI came in flat inter-month during September and rose 1.7% from a year earlier. In addition, consumer prices excluding food and energy costs rose 0.1% MoM and 2.4% over the last twelve monthsIn the meantime, all the attention is expected to shift to the imminent start of the US-China trade talks in Washington amidst increasing expectations… as well as skepicism.The pair has finally surpassed the critical juncture at the 1.10 handle amidst the continuation of the correction lower in the US Dollar. Looking at the broader picture, the relentless slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency for the next months. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics also adds to the current negative view.At the moment, the pair is advancing 0.50% at 1.1026 and faces the next resistance at 1.1055 (55-day SMA) seconded by 1.1109 (monthly high Sep.13) and finally 1.1143 (100-day SMA). On the downside, a breakdown of 1.0958 (10-day SMA) would target 1.0879 (2019 low Oct.1) en route to 1.0839 (monthly low May 11 2017).Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of suc