EUR/USD drops to fresh lows closer to 1.1300


  • The pair loses further ground and threatens 1.1300.
  • The greenback stays firm just below the key 97.00 handle.
  • Retail Sales and the Empire State manufacturing index coming up next.

The buying interest around the greenback keeps adding pressure to EUR/USD, dragging it to fresh 13-month lows near 1.1300 the figure.

EUR/USD looks to US calendar

Spot is now resuming the downside following another knee jerk in the EM FX space, where the Turkish Lira is giving away part of its daily gains after the Turkish court ruled out another appeal for the release of US pastor A.Brunson and the US sanctions kick in.

In addition, and still in the EM universe, the South African Rand, the Ruble and the Mexican Peso have reverted the initial optimism and are now trading in fresh daily lows.

Looking ahead, spot should be in centre stage in light of the upcoming publication of US July’s Retail Sales and the regional manufacturing gauge measured by the Empire State.

EUR/USD levels to watch

At the moment, the pair is down 0.23% at 1.1319 facing the next support at 1.1310 (2018 low Aug.15) seconded by 1.1300 (psychological level) and then 1.1188 (61.8% Fibo of 2017-2018 up move). On the upside, a breakout of 1.1360 (200-week SMA) would aim for 1.1494 (10-day SMA) and finally 1.1591 (21-day SMA).

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