The selling pressure is now picking up extra pace around the single currency, now dragging EUR/USD to the area of fresh daily lows in the vicinity of 1.1940.
EUR/USD weaker ahead of ADP
The pair keeps losing ground on Wednesday following a broad-based pick up in the demand for the greenback. In fact, the US Dollar Index (DXY) has managed to rebound from yesterday’s fresh cycle lows near 91.60 to the mid-92.00s for the time being.
Spot has already shed over a cent since Tuesday’s peaks in the boundaries of 1.2070 to current levels, all on the back of the already mentioned USD recovery and the logical profit taking mood in light of the recent and strong upside.
Data wise in the euro bloc, advanced Spanish inflation figures tracked by the HICP is expected to rise above estimates at an annualized 2.0% in August. Further data in the region saw business climate at 1.1 for the current month while consumer confidence came in at -2.0, matching consensus. Next on tap will be the flash German CPI and HICP for the month of August.
Across the pond, the ADP report is due seconded by the second revision of Q2 GDP and the speech by FOMC’s J.Powell (permanent voter, centrist).
EUR/USD levels to watch
At the moment, the pair is losing 0.19% at 1.1949 facing the immediate support at 1.1938 (low Aug.30) followed by 1.1851 (10-day sma) and then 1.1818 (21-day sma). On the flip side, a break above 1.2069 (2017 high Aug.29) would open the door to 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2186 (high Dec 25 2014).
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