EUR/USD: fresh lows, heading towards 1.1660

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1749

The EUR/USD pair reaches fresh daily lows sub-1.1750 early US session, as softer-than-expected EU data coupled with increased dollar demand. The greenback started the day with a strong positive note after Wall Street rallied to new record highs on Monday, maintaining the positive tone through the European morning. The common currency took a first hit from the German ZEW survey, which showed that economic sentiment in the country rose by less than expected in October, with the index up to 17.6 against the expected 20.0. The index for the whole region was also below market's expectations, falling to 26.7 from previous 31.7. Inflation in the Euro area remained unchanged at 1.5% yearly basis during September, up from the previous month by 0.4%, as expected. In the US, import prices rose by more than expected in September, up by 2.7%, from a year earlier, with the hurricanes that hit the country having a small impact on data collection according to the official report.

The pair has currently retraced the 61.8% of its latest bullish run, presenting a clear bearish stance in the short term, as in the 4 hours chart, the price is also accelerating below its moving averages, whilst technical indicators gain further downward momentum within bearish territory. The pair faces its next short-term support at 1.1720, with a break below the level opening doors for additional declines towards the 1.1660 region, where the pair bottomed in August and September.

Support levels: 1.1720 1.1660 1.1620

Resistance levels: 1.1790 1.1830 1.1865

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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