EUR/USD returns below 1.1600, flirting with session lows

The pair lost upside traction and returned to the 1.1590/85 band.
The greenback remains supported near 95.00, approaches 95.20.
Markets remain focused on trade. EMU’s Industrial Production next on tap.

Pablo Piovano FXStreet

EUR/USD faded the earlier move higher beyond 1.1600 the figure and has now returned to the 1.1590/85 band, flirting with daily lows ahead of the opening bell in Euroland.

EUR/USD looks to trade, data

The escalation of trade jitters with US and China in centre stage and its potential effects on the EM FX has returned to the fore on Wednesday and is currently sustaining the risk-off sentiment, undermining any bullish attempts in spot at the same time.

In the meantime, the pair is extending the sideline theme seen since the start of September, with gains capped around 1.1660 and the 1.1500 neighbourhood managing well to offer decent contention for the time being.

As mentioned, the trade-factor continues to prevail when comes to determine the price action, while easing concerns over Italy and its budget has somewhat mitigated the downside pressure so far.

Ahead in the day, Industrial Production figures in the euro area for the month of July are coming up next followed by US Producer Prices during August and speeches by FOMC’s Bullard and Brainard, all preceding the release of the Fed’s Beige Book.

EUR/USD levels to watch

At the moment, the pair is losing 0.19% at 1.1584 and a break below 1.1508 (low May 29) would target 1.1449 (50% Fibo of the 2017-2018 up move) and finally 1.1299 (2018 low Aug.15). On the upside, the next hurdle aligns at 1.1659 (high Sep.6) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).

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.

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