EUR/USD off lows, still below 1.1150 amid USD comeback
- 200-DMA remains a tough nut to crack for the EUR bulls.
- Trade deal doubts offer support to the USD recovery.
- Markets await US Industrial Output and trade updates for fresh impulse.
EUR/USD came under fresh selling pressure over the last hour and eased nearly 10 pips from the Asian range trade seen between 1.1140-1.1150 levels, mainly driven by solid rebound staged by the US dollar vs. its main competitors.
At the press time, the pair has managed to jump off 1.1129 lows, as it looks to re-attempt the 200-DMA barrier, now placed at 1.1153.
EUR/USD weighed down by trade uncertainty?
The US dollar picked up the recovery momentum across the board, courtesy a fresh selling wave caught by the GBP/USD amid resurfacing no-deal Brexit fears, as the UK PM Johnson is likely to set a new deadline to prevent any extension of the Brexit transition period beyond 2020.
Additional strength in the US currency can be attributed to the doubts over the details of the US-China Phase One trade deal, with the Chinese officials not very welcoming about the specifics despite several assurances from the White House. In times of market uncertainty, investors tend to seek safety in the world’s reserve currency, the US dollar.
Meanwhile, in absence of any significant macro news from the Eurozone docket, markets look forward to the US Industrial Production and JOLTS job openings data due later in the NA session. In the meantime, the spot will continue to remain at the mercy of the USD dynamics, as the shared currency shrugs off the recent comments on the EU-US tariffs. However, the ECB policymaker Rehn's dovish comments seem to have collaborated with EUR/USD's latest downtick to daily lows.
EUR/USD Technical levels to watch
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.
