EUR/USD hits fresh 10-week lows near 1.1300 after a brief spike to 1.1345

Matías Salord FXStreet

The EUR/USD pair rose to 1.1346 amid market volatility near the London fix and a spike to the upside in GBP/USD. But the move higher was short-lived and quickly bounced to the downside falling to 1.1303, a new 2-month low.

From near 1.1300 rebounded and as of writing was trading at 1.1320, moving slightly off lows but still under pressure amid a higher US Dollar across the board. The downside remains supported both, from a fundamental and a technical perspective.

While data released earlier today showed lower-than-expected numbers in inflation in France and retail sales in Germany, in the US, the ADP report came in at 227K private jobs in October, above expectations. Data points to solid US growth supporting further rate hikes from the Federal Reserve. Regarding the ECB, it is not clear when it could start raising rates. The euro has been affected today also by comments regarding Brexit that moved EUR/GBP.

EUR/USD Levels to watch

To the downside, the key support is seen around the 1.1300 area (2018 lows). A break lower could trigger an acceleration to the downside. Below that level support could be seen at 1.1280 and 1.1250. On the flip side, resistance could be located at 1.1335/40 (20-hour moving average), 1.1345 (US session high) and 1.1360 (daily high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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