EUR/USD drops to session lows near 1.1010 ahead of ZEW
|- EURUSD comes under pressure near 1.1010.
- German ZEW survey coming up next.
- NY Empire State index, Fedspeak due later in the US docket.
A renewed bout of selling pressure around the European currency is now dragging EUR/USD to fresh daily lows in the vicinity of 1.1010.
EUR/USD focused on German data
The pair has quickly faded the earlier spike to the 1.1050 region and is now focusing instead on the lower end of the weekly range near the key support at 1.1000 the figure.
The knee-jerk in spot comes in response to the continuation of the correction higher in the Greenback amidst steady US yields and some fresh effervescence from the US-China trade front.
Later in the session, EUR will be under further scrutiny in light of the publication of the key German/EMU Economic Sentiment tracked by the ZEW survey. Across the pond, the regional gauge of the manufacturing sector by the Empire State index will be the salient event in tandem with speeches by FOMC’s Bostic, George and Daly.
What to look for around EUR
The pair met strong resistance in the mid-1.10s, where sits the key 55-day SMA, sparking some profit taking and the ongoing retracement to the vicinity of the 1.10 support. The corrective upside, however, remains well in place for the time being and supported by the improved mood in the riskier assets and a weak 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 in the longer run. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics could also maintain gains somewhat limited.
EUR/USD levels to watch
At the moment, the pair is retreating 0.02% at 1.1022 and a breakdown of 1.0985 (21-day SMA) would target 1.0879 (2019 low Oct.1) en route to 1.0839 (monthly low May 11 2017). On the flip side, the next barrier emerges at 1.1049 (55-day SMA) seconded by 1.1062 (monthly high Oct.11) and finally 1.1109 (monthly high Sep.13).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.