- The pair’s decline halted just ahead of the key 1.1600 support.
- The greenback gives away part of the initial gains to the 95.40 area.
- US Housing Starts, Building Permits came in below estimates in June.
After testing the boundaries of the 1.1600 critical support, EUR/USD appears to have met some dip-buyers and it has now regained the 1.1630 region.
EUR/USD rebounds on poor US data, ECB
The pair manages to regain the 1.1630 region following some decent support in the 1.1600 neighbourhood, fresh hourly/multi-day low, as the upside momentum in the back seems to be taking a breather.
Positive comments from ECB’s Villeroy on the French economy appear to be collaborating with the corrective upside, while poor data releases across the pond hit the buck and added to the pair’s squeeze higher.
In fact, both Building Permits and Housing Starts missed expectations in June, removing some tailwinds from the strong rebound in the buck to levels around 95.40 when measured by the US Dollar Index (DXY).
Later in the session, Chief J.Powell will testify before the House Financial Services Committee, seconded by the release of the Fed’s Beige Book later in the day.
Data wise in Euroland, final June’s headline CPI came in in line with the preliminary prints, although the Core reading rose less than initially estimated.
EUR/USD levels to watch
At the moment, the pair is losing 0.25% at 1.1631 and a breakdown of 1.1602 (low Jul.18) would open the door to 1.1527 (low Jun.29) and finally 1.1508 (2018 low May 30). On the upside, the initial hurdle aligns at 1.1662 (21-day sma) seconded by 1.1695 (10-day sma) and finally 1.1718 (monthly low Dec.12 2017).
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