- The pair stays rangebound in the 1.1730 area on Wednesday.
- New planned US tariffs on Chinese imports dominate the scenario.
- The greenback keeps the choppy performance above 94.00.
The selling bias prevails around the European currency on Wednesday and is now motivating EUR/USD to extend the sideline theme in the low-1.1700s.
EUR/USD looks to trade, ECB-speak
The pair is down for the second day in a row, extending the rejection from Monday’s tops in the boundaries of 1.1800 the figure against the backdrop of increasing concerns over the US-China trade war.
In fact, the risk aversion sentiment re-emerged among traders after the US threatened to impose an extra $200 billion tariffs on Chinese products and the subsequent retaliatory answer by China, all rendering in moderate losses in Asian markets earlier today.
Looking ahead, ECB’s M.Draghi, Y.Mersch, P.Praet and D.Nouy are due to speak in an ECB event, whereas June’s Producer Prices and the weekly report by the EIA are only due across the pond.
EUR/USD levels to watch
At the moment, the pair is losing 0.09% at 1.1733 and a break below 1.1691 (low Jul.10) would open the door to 1.1656 (21-day sma) and then 1530 (low Jun.19). On the flip side, the next hurdle emerges at 1.1791 (high Jul.9) seconded by 1.1853 (high Jun.15) and finally 1.1854 (38.2% Fibo of April-May drop).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.