EUR/USD bounces off new YTD lows near 1.1260
- EUR/USD remains well on the defensive and drops to 1.1260.
- The dollar keeps pushing higher despite mixed yields.
- US Consumer Confidence comes up next.
Further weakness dragged EUR/USD to fresh 2022 lows in the proximity of the 1.1260 level on Tuesday.
EUR/USD weak on dollar buying
EUR/USD remains under heavy pressure in a context favourable to the greenback, where geopolitical tensions persist and US money markets continue to show a mixed performance.
On the latter, yields in the short end of the curve manage to regain some upside traction as opposed to the continuation of the downtrend in the belly and the long end.
In the meantime, the risk complex remains well under pressure against the backdrop of rising cautiousness ahead of the FOMC meeting on Wednesday, where consensus seems to be tilted towards a hawkish message from the Committee.
Further out, better-than-expected results in the German docket failed to lend some support to the shared currency after the Business Climate tracked by the IFO survey surprised to the upside in January.
Across the pond, house prices measured by the FHFA House Price Index and the S&P/Case-Shiller Index rose 1.1% MoM in November and 18.3% YoY in the same period, respectively. Further data showed the relevant US Consumer Confidence at 113.8 in January (from 115.2) and the Richmond Fed Manufacturing Index retreating to 8 for the same month.
EUR/USD levels to watch
So far, spot is losing 0.43% at 1.1276 and faces the next up barrier at 1.1369 (high Jan.20) seconded by 1.1469 (100-day SMA) and finally 1.1482 (2022 high Jan.14). On the other hand, a break below 1.1263 (2022 low Jan.25) would target 1.1221 (monthly low Dec.15 2021) en route to 1.1186 (2021 low Nov.24).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
