EUR/USD challenges 2-month lows near 1.1170

EUR/USD comes under further pressure and sinks to 1.1170.
ECB could announce extra easing measures on Thursday.
EC’s Consumer Confidence coming up next.

The offered bias remains intact around the single currency in the first half of the week, dragging EUR/USD to approach the area of 2-month lows in the 1.1170/60 band

EUR/USD looks to ECB, data

Spot is down for the third session in a row so far today, always in response to the solid demand for the greenback and rising expectations of a fresh wave of monetary easing by the ECB, likely to be announced at its meeting later this week.

In addition, diminished odds for a 50 bps interest rate cut by the Federal Reserve next week have been also lending extra legs to the rally in the buck, which has already pushed the US Dollar Index to new 5-week highs around 97.60.

In the docket, flash July Consumer Confidence in the euro area measured by the European Commission is only due later in the day, while Existing Home Sales and the Richmond Manufacturing index are due across the Atlantic.

What to look for around EUR

The inability of the pair to clear the important resistance area in 1.1280/90 has encouraged sellers to return to the markets and drag EUR back below the 1.1200 level, threatening to visit the key contention area in the 1.1181/76 band. Further out, occasional bullish attempts should be seen as a short-lived against the backdrop of renewed and increasing speculations of another wave of monetary stimulus from the European Central Bank as early as this week’s meeting, including interest rate cuts, the resumption of the QE programme and potential changes in the forward guidance.

EUR/USD levels to watch

At the moment, the pair is retreating 0.36% at 1.1168 and faces immediate contention at 1.1116 (monthly low May 30) seconded by 1.1109 (low Apr.26) and finally 1.1106 (2019 low May 23). On the upside, a breakout of 1.1286 (high Jul.11) would target 1.1313 (200-day SMA) en route to 1.1412 (high Jun.25).

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.