EUR/USD hits one-week low, farther below 1.20 mark
| • USD extends post-NFP recovery move.
• Upbeat EZ Sentix fails to boost EUR.
After an initial uptick to mid-1.2000s, the EUR/USD pair ran through some fresh offers and drifted into negative territory for the second consecutive session.
The pair extended its rejection slide from the 1.2080-90 heavy supply zone and slipped below the key 1.20 psychological mark, to one-week lows during the early European session, amid a strong follow-through US Dollar rebound.
With investors looking past Friday's weaker-than-expected US jobs data, a goodish uptick in the US Treasury bond yields underpinned the USD demand and kept exerting downward pressure on the major.
Meanwhile, possibilities of some short-term trading stops being triggered, on weakness below the 1.2015-10 region, further collaborated to the pair's sharp retracement of around 15-20 pips over the past hour or so.
On the economic data front, today’s better-than-expected Euro-zone Sentix Investor Confidence Index, coming in at 32.9 for Jan. as against 31.5 expected and 31.1 previous, did little to provide any boost, with the USD price dynamics acting as an exclusive driver of the pair's slide at the start of a new trading week.
Technical levels to watch
The corrective slide now seems to get extended towards the 1.1945-40 intermediate support before the pair eventually drops to test the 1.1900 handle. On the upside, any recovery attempts back above 1.2015 level might now confront resistance near mid-1.2000s, which is followed by the 1.2080-90 supply zone.
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