EUR/USD loses the grip further, sinks to 3-week lows near 1.1750
- EUR/USD collapses to the mid-1.1700s, or multi-week lows.
- The dollar climbs to monthly highs just below 93.00.
- US Retail Sales, Philly Fed came in above estimates.
The single currency loses further ground and drags EUR/USD to the mid-1.1700s on Thursday, or new 3-week lows.
EUR/USD weaker on USD-advance
The downtrend in EUR/USD gathers extra legs and breaks below the 1.1800 yardstick on quite a convincing fashion, sending spot to levels last seen in mid-August near 1.1750, where some support seems to have turned up.
Higher yields of the US 10-year note trade on a solid note and flirt with weekly tops near 1.35% in response to better-than-expected results from the US docket earlier in the session, lending at the same time fresh legs to the buck.
Indeed, US headline Retail Sales expanded 0.7% MoM in August and 1.8% MoM when comes to the core sales. In the same note, the Philly Fed Index improved to 30.7 for the month of September, well above forecasts. In addition, Initial Claims rose by 332K WoW in the week ended on September 11.
EUR/USD levels to watch
So far, spot is losing 0.53% at 1.1752 and faces the next up barrier at 1.1845 (weekly high Sep.14) followed by 1.1909 (monthly high Sep.3) and finally 1.1928 (100-day SMA). On the other hand, a break below 1.1750 (monthly low Sep.16) would target 1.1704 (monthly low Mar.31) en route to 1.1663 (2021 low Aug.20).
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.
