EUR/USD comes under pressure near 1.1900, looks to Lagarde, data

The selling pressure around the European currency picks up extra pace and drags EUR/USD to fresh weekly lows in the 1.1900 neighbourhood.

EUR/USD focused on data, Lagarde

EUR/USD sheds ground for the second session in a row and approaches the key support at 1.1900 the figure on turnaround Tuesday, always on the back of the resurgence of the demand for the greenback.

In the meantime, yields of the German 10-year Bunds keep the trade in the lower end of the weekly range around -0.18%, while the US 10-year note stays anaemic in the sub-1.50% area.

The now sour sentiment around the risk complex weighs on the single currency and its risky peers, all against the backdrop of rising cautiousness ahead of key data releases in the US docker later in the week.

In the domestic docket the final Consumer Confidence gauged by the European Commission came in unchanged at -3.3 for the month of June. Later on Tuesday, the German advanced inflation figures for the current month are due ahead of the speech by Chairwoman C.Lagarde at the Brussels Economic Forum 2021.

Across the pond, the House Price Index is due seconded by the S&P/Case-Shiller Index and June’s Consumer Confidence.

What to look for around EUR

Sellers seem to have regained the upper hand and drag EUR/USD back to the vicinity of the 1.1900 key support. In the meantime, price action in spot is expected to monitor the dollar dynamics, particularly following the latest FOMC gathering, prospects of higher inflation and potential tapering before anticipated. Further out, support for the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity and the investors’ appetite for riskier assets.

Key events in the euro area this week: Final EMU Consumer Confidence, advanced German CPI, ECB’s Lagarde (Tuesday) – German labour market report, flash EMU CPI (Wednesday) – German Retail Sales, Final Manufacturing PMIs in the euro area, EMU Unemployment Rate, ECB’s Lagarde.

EUR/USD levels to watch

So far, spot is losing 0.14% at 1.1905 and a break below 1.1847 (monthly low Jun.18) would target 1.1835 (low Mar.9) and route to 1.1704 (2021 low Mar.31). On the other hand, the next resistance emerges at 1.1994 (200-day SMA) followed by 1.2026 (100-day SMA) and finally 1.2064 (38.2% Fibo retracement of the November-January rally).