EUR/USD struggles for direction near 1.1150

The pair stays depressed near YTD lows on Thursday.
Poor German data on Wednesday weighed on EUR.
US Durable Goods Orders, Initial Claims coming up later.

Pablo Piovano FXStreet

The sentiment surrounding the shared currency has deteriorated further in past hours, forcing EUR/USD to print new yearly lows in the 1.1140 region.

EUR/USD hurt by data, sentiment

Spot navigates the mid-1.1100s ahead of the opening bell in Euroland, just pips above yesterday’s fresh 2019 lows and still under downside pressure against the backdrop of souring sentiment in Euroland.

In fact, April’s IFO survey published yesterday in Germany came in on the soft side, exacerbating concerns over the slowdown in the domestic economy and pouring cold water over any potential rebound of the economic activity in the region, at least in the short-term horizon.

There are no data releases in the Old Continent scheduled for today, whereas Initial Claims and Durable Goods Orders will be published later today across the pond.

What to look for around EUR

The broad-based risk-appetite trends and USD-dynamics are posed to rule the sentiment surrounding the European currency for the time being, all in combination with the onoging US-China trade dispute and potential US tariffs on EU products. Recent weak results from key fundamentals in the region plus a now unlikely rebound in the activity in the second half of the year have added to the ongoing concerns that the slowdown in the region could last longer that expected and the ECB is therefore likely to remain ‘neutral/dovish’ for the foreseeable future (say until mid-2020?). On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections in late May, as the populist option in the form of the far-right and the far-left movements appears to keep swelling among voting countries.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.1152 and faces initial contention at 1.1140 (2019 low Apr.24) seconded by 1.1118 (monthly low Jun.20 2017) and finally 1.0839 (monthly low May 11 2017). On the upside, a breakout of 1.1238 (21-day SMA) would target 1.1285 (55-day SMA) en route to1.1323 (high Apr.17).

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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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