- EURUSD comes under pressure near 1.1010.
- German ZEW survey coming up next.
- NY Empire State index, Fedspeak due later in the US docket.
A renewed bout of selling pressure around the European currency is now dragging EUR/USD to fresh daily lows in the vicinity of 1.1010.
EUR/USD focused on German data
The pair has quickly faded the earlier spike to the 1.1050 region and is now focusing instead on the lower end of the weekly range near the key support at 1.1000 the figure.
The knee-jerk in spot comes in response to the continuation of the correction higher in the Greenback amidst steady US yields and some fresh effervescence from the US-China trade front.
Later in the session, EUR will be under further scrutiny in light of the publication of the key German/EMU Economic Sentiment tracked by the ZEW survey. Across the pond, the regional gauge of the manufacturing sector by the Empire State index will be the salient event in tandem with speeches by FOMC’s Bostic, George and Daly.
What to look for around EUR
The pair met strong resistance in the mid-1.10s, where sits the key 55-day SMA, sparking some profit taking and the ongoing retracement to the vicinity of the 1.10 support. The corrective upside, however, remains well in place for the time being and supported by the improved mood in the riskier assets and a weak Dollar. Looking at the broader picture, the relentless slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the longer run. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics could also maintain gains somewhat limited.
EUR/USD levels to watch
At the moment, the pair is retreating 0.02% at 1.1022 and a breakdown of 1.0985 (21-day SMA) would target 1.0879 (2019 low Oct.1) en route to 1.0839 (monthly low May 11 2017). On the flip side, the next barrier emerges at 1.1049 (55-day SMA) seconded by 1.1062 (monthly high Oct.11) and finally 1.1109 (monthly high Sep.13).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD tumbles toward 1.1450 as MIddle East tensions linger
EUR/USD has come under renewed selling pressure, testing 1.1450 in the European session on Monday. The renewed US Dollar buying, amid deepening Middle East conflict, and mixed PMI data releases from Germany and the Eurozone weigh on the pair as the focus shifts to US data and central bank talks.
Could Iran block the Strait of Hormuz? Why Oil is on edge after US strikes
As the Israel-Iran conflict reaches new heights, an old threat is coming back to haunt the markets: that of the closure of the Strait of Hormuz. This narrow arm of the sea in the Persian Gulf, wedged between Iran to the north and the United Arab Emirates and Oman to the south, is much more than a simple sea passage.
Gold price hangs near daily low amid modest USD strength; downside seems cushioned
Gold price retains its negative bias through the first half of the European session on Monday and currently trades near the lower end of its daily range. The US attack on Iran’s nuclear facilities on Sunday raises the risk of a broader conflict in the Middle East and benefits the US Dollar's status as the global reserve currency.
Five fundamentals for the week: World anxiously awaits Iran's response Premium
The Middle East remains in the spotlight after a turbulent weekend. Fed Chair Jerome Powell faces lawmakers and may shed more light on the central bank's thinking, and a key inflation figure is expected later to promise a strong end to the week.
GBP/USD holds recovery above 1.3400, with eyes on UK PMI, Middle East woes
GBP/USD is holding its rebound above 1.3400 in the European session on Monday. The fears that Iran would retaliate against US attacks on its nuclear sites continue to support the safe-haven US Dollar. Investors await the June preliminary PMI readings from the UK and the US for fresh trading directives.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.