EUR/USD comes down to test 1.1330, 200-week SMA

  • Spot comes under further pressure near 1.1330.
  • The march north in the greenback remains unabated.
  • German Industrial Production contracted 0.4% MoM in December.

Another bout of selling pressure is now pushing EUR/USD to visit the 1.1330 area, where sits the critical 200-week SMA.

EUR/USD navigates 2-week lows

There seems to be no respite for the shared currency this week, now forcing spot to drop further and test fresh mutli-day lows in the 1.1330 area.

The march north in the greenback, in the meantime, stays well and sound for the sixth session in a row so far today, always on the back of the persistent deterioration in the sentiment surrounding the risk-associated complex.

Earlier in the session, German Industrial Production contracted 0.4% MoM during the last month of 2018, showing some improvement from November’s 1.3% contraction.

Across the pond, Fed’s mega-dovish VP R.Clarida is due to speak, whereas weekly Initial Claims and Consumer Credit figures will be published in the calendar.

What to look for around EUR/USD

The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP in the bloc and the persistent negative streak from German fundamentals. On the political scenario, May’s EU parliamentary elections should start to gather relevance with the days, paying special attention to the potential advance of populism in the region.

EUR/USD levels to watch

At the moment, the pair is losing 0.23% at 1.1336 and a break below 1.1331 (low Feb.7) would aim for 1.1329 (200-week SMA) en route to 1.1289 (2019 low Jan.24). On the other hand, the next hurdle emerges at 1.1390 (55-day SMA) seconded by 1.1433 (100-day SMA) and finally 1.1442 (38.2% Fibo of the September-November drop).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

US Dollar Index off YTD peaks near 97.40 on data

The greenback is now trading on a volatile fashion, coming down from fresh 2019 highs near the 97.40 region when tracked by the US Dollar Index (DXY) to the current 97.00 neighbourhood.

US Dollar Index News

AUD/USD climbs to session tops, above 0.7100 handle amid renewed US-China trade optimism

The AUD/USD pair managed to recover early lost ground, led by softer Chinese inflation data and is currently placed at fresh session tops, around the 0.7110-15 region.