EUR/USD slides closer to Friday’s post-NFP swing low, just above 1.1200 handle
- A modest USD pullback helped regain some traction on Monday.
- Dismal Euro-zone data prompts some fresh selling at higher levels.
- Coeure's comments exert some additional pressure in the last hour.
Having touched an intraday high level of 1.1235, the EUR/USD pair met with some fresh supply and has now moved back within the striking distance of Friday's post-NFP swing low.
With investors looking past Friday's upbeat headline US NFP print, a modest US Dollar pullback - led by the US President Donald Trump's fresh criticism about the Fed's policy tightening, helped the pair to gain some positive traction at the start of a new trading week.
The shared currency, however, failed to capitalize on the move, rather started losing ground following the release of Euro-zone July Sentix investor confidence, which fell to -5.8 - the weakest level since November 2014 and highlighted that a German recession is looming.
Meanwhile, the latest leg of a downtick over the past hour or so followed the ECB Governing Council member Benoit Coeure's comments, saying that accommodative policy is needed "more than ever" and that they could restart the asset purchases program if needed.
However, absent relevant market moving economic releases from the US might help limit any further downside for the major, though a sustained breakthrough the 1.1200 handle now seems to open the room for an extension of the intraday depreciating move.
Moving ahead, the Fed Chair Jerome Powell's public appearance on Tuesday, followed by a two-day Congressional testimony on Wednesday and Thursday, along with this week's US consumer inflation figures will now play an important role in influencing the pair’s next leg of a directional move.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
