EUR/USD under pressure around 1.2360, US data eyed
|- The pair remains within the negative territory, near lows around 1.2360.
- EUR suffered the dovish tone from ECB’s Draghi earlier in the day.
- February’s US Retail Sales, Producer Prices next on of relevance.
The selling bias remains unchanged around the European currency today, forcing EUR/USD to keep the trade close to daily lows in the 1.2360 region.
EUR/USD now looks to US data
After two consecutive daily advances, the pair met a tough barrier above 1.2400 the figure where sellers appear to be clustered ahead of the ‘double tops’ in the 1.2445/50 band.
In addition, EUR met extra selling orders after ECB’s President Mario Draghi said earlier in the session that a strong exchange rate could undermine inflation efforts to gather traction. In the same line, Draghi expressed his concerns over the subdued performance of underlying inflation.
On the USD-side, the greenback trades on a steady fashion as market participants continue to digest the recent headlined from the Trump administration as well as the recently published inflation figures during last month, which matched prior surveys.
In the data space, EMU’s Industrial Production disappointed expectations in January, contracting at a monthly 1.0% and expanding 2.7% over the last twelve months.
Across the pond, the main event will be February’s Retail Sales and Producer Prices, seconded by Business Inventories during January and the weekly report by the DoE on US crude oil stockpiles.
EUR/USD levels to watch
At the moment, the pair is retreating 0.18% at 1.2369 facing the next support at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the other hand, a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18).
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