EUR/USD finds support near 1.1390, looks to trade, Turkey

The pair managed to rebound from daily lows in the sub-1.1400 area.
The US Dollar Index lost impetus near 96.40 in early trade.
US-China trade front, Turkey, Italy in the limelight today.

Pablo Piovano FXStreet

The selling pressure around the European currency remains unabated so far today, although EUR/USD appears to have found decent support in sub-1.1400 levels.

EUR/USD weaker on USD pick up

The pair remains on the defensive at the beginning of the week, coming under some selling pressure after it briefly tested the 1.1450 region, where lies the 10-day SMA.

In the meantime, market participants keep looking to the US-China trade dispute in light of the upcoming visit to the US of the Chinese Vice Commerce Minister later in the month.

Spot appears somewhat offered today as the sentiment around the EM FX universe, specifically around Turkey, stays fragile.

On another front, EUR remained sceptic after Italian Cabinet Undersecretary G.Giorgetti advocated for an extension of the ECB’s QE programme in order to protect Italy from speculators.

Speaking of which, the speculative community is once again net short on the single currency for the first time since May 2 2017, according to the latest CFTC report in the week to August 14.

EUR/USD levels to watch

At the moment, the pair is losing 0.17% at 1.1417 and a breakdown of 1.1299 (2018 low Aug.15) would target 1.1188 (61.8% Fibo of the 2017-2018 up move) en route to 1.1118 (monthly low Jun.20 2017). On the upside, the next hurdle aligns at 1.1447 (high Aug.17) followed by 1.1508 (low May 29) and finally 1.1555 (21-day SMA).

Author

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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