EUR/USD breaks below 1.1700, fresh lows

The offered tone around the single currency is gathering further traction today, now dragging EUR/USD back below 1.1700 the figure, or fresh daily lows.

EUR/USD offered on US data

Spot is now trading on the defensive, adding to the view of a correction lower somewhat forecasted by the recent activity in futures markets and options markets. The down move is accompanied by a strong rebound in the greenback after testing fresh 2017 lows during the Asian session.

Yesterday’s ‘outside day’ candle followed by today’s leg lower anticipates the imminence of a (long-waited?) reversal, which should find initial contention in the 10-day sma in the 1.1600 neighbourhood.

In the data space today, US durable goods orders unexpectedly expanded 6.5% on a monthly basis in June, while goods trade deficit bettered prior estimates at $63.86 billion during the same period.

Additional data saw initial claims rising 244K WoW, taking the 4-week average to 244.00 K.

EUR/USD levels to watch

At the moment, the pair is losing 0.26% at 1.1704 and a breach of 1.1688 (low Jul.27) would open the door to 1.1608 (10-day sma) and finally 1.1501 (21-day sma). On the upside, the next up barrier is located at 1.1777 (2017 high Jul.27) seconded by 1.1800 (psychological level) and then 1.1900 (psychological level).

Furthermore, the daily RSI (14) shows the pair is in overbought territory at 71, while the MACD stays well into the bullish camp.