EUR/USD meets fresh supply, 1.1508 back on sight
- King dollar rules the roost amid escalating US-Sino trade tensions and MonPol divergence.
- Bears gear up for a test of yearly lows at 1.1508, despite upbeat Eurozone Sentix.
The EUR/USD pair sold-off once again near the 1.1570 supply zone, as awful German industrial data outweighed upbeat Eurozone Sentix investor confidence numbers.
German factory orders reported the steepest monthly drop in nearly a year and a half, arriving at -4.0% in June versus -0.5% expected. Meanwhile, the Eurozone Sentix investor confidence gauge came in at 14.7 in August versus 13.4 expected.
The downside bias in the spot persists, as the US dollar heads towards 2018 tops versus its main peers, in the wake of intensifying US-China trade war fears. The greenback is the most preferred currency in the times of market panic and uncertainty.
More so, the divergent monetary policy outlooks between the Fed and ECB also continue to keep the bearish pressure intact on the major. The Fed remains on track to hike the rates next month while no ECB rate hike is expected until the summer of 2019.
Meanwhile, with the Eurozone data out of the way and a quiet US docket ahead, the pair will continue to get influenced by the USD dynamics, as investors gear up for the US CPI figures due later this week.
EUR/USD Technical Levels
FXStreet’s Analyst Yohay Elam, noted: “Looking down, 1.1508 is the 2018 low which serves as the next support line. Below, we are back to levels last seen in July last year. 1.1472 is an important Pivot Point, and 1.1442 is the confluence of several levels. On the topside, some resistance awaits at 1.1575 which was a swing low in mid-July. Further up, 1.1620 was a support line in late July and 1.1665 separated ranges last month as well.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
