EUR/USD sidelined around 1.1730 amidst risk-off trade

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.

Pablo Piovano FXStreet

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).

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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