EUR/USD is approaching support at 1.0750 with Retail sales data on tap

• The Euro extends losses after weak German factory orders
• Sluggish Eurozone data increases hopes of ECB rate cuts on early 2024
• The EUR/USD approaches an important support area at 1.0750.

The Euro remains offered on Wednesday’s European market opening times. German Factory orders have disappointed,  increasing concerns about a deep recession in the Euro Area and adding negative pressure on the Euro.

German factory data weighs on the Euro

New orders for products manufactured in Germany dropped 3.7% in October against market expectations of a flat performance, following a 0.2% increase in September.

These figures come after the region’s services PMI revealed that the sector’s activity contracted for the fourth consecutive month in November, which poses a serious challenge for the ECB’s monetary tightening plans.

Later today, the Retail sales are expected to have improved moderately last month, which might offer some respite to a battered Euro, although the market’s main focus is the US ADP data, due at 12:15 GMT today.

The euro might find some buyers at 1.0750

The near-term bias remains bearish although the confluence of the 4h 200 SMA with a previous resistance area at 1.0750 might provide some support to the Euro. Below here, the next target would be 1.0660

Resistances are at 1.0850 and 1.1010.

Technical levels to watch