EUR/USD comes under pressure near 1.1340

The pair sheds gains for yet another session and is testing 1.1340.
The greenback recovered the smile and is now flirting with 96.80.
Brexit talks, US data seen driving the sentiment today.

Pablo Piovano FXStreet

EUR/USD is extending the leg lower following Wednesday’s doji-like candle and the rejection from the major barrier at 1.1500 the figure.

EUR/USD looks to Brexit, data

Spot came under increasing selling pressure after clinching fresh multi-day peaks in the boundaries of the 1.1500 handle earlier in the week, currently navigating 6-day lows in the 1.1340 region amidst the recovery in the greenback and shrinking optimism in the risk-associated space.

In fact, uncertainty around the Brexit negotiation continued to weigh on investors’ sentiment, always with rumours and speculations on a potential deal at some point later in the month hovering over the markets but still no solid progress to be seen.

In the US, the FOMC kept its monetary conditions unchanged as broadly expected, reiterating that risks remain ‘roughly balanced’ and thus leaving the door open for another rate hike at the December meeting.

Data wise today, nothing expected in Euroland, whereas Producer Prices and the preliminary print of the U-Mich index are due across the pond.

EUR/USD levels to watch

At the moment, the pair is down 0.21% at 1.1340 and a break below 1.1334 (low Oct.26) would target 1.1313 (200-week SMA) en route to 1.1299 (YTD low Aug.15). On the upside, the next hurdle is located at 1.1500 (high Nov.7) seconded by 1.1508 (low May 29) and finally 1.1550 (high Oct.22).

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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.

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