EUR/USD tests fresh lows post-US PCE, near 1.1160

Pablo Piovano FXStreet

The greenback has gathered extra traction in the wake of US releases today, sending EUR/USD to fresh lows in the 1.1160 area.

EUR/USD weaker as sentiment deteriorates

The pair has intensified its daily downside after US inflation figures tracked by the PCE has surprised markets to the upside, rising 1.6% on a year to July vs. 1.5% expected. On a monthly basis, the PCE rose 0.1%, matching estimates.

Further releases saw Personal Income and Personal Spending expanding 0.4% and 0.3% inter-month, in line with prior surveys.

Spot has briefly tested the vicinity of 1.1160, where it seems to have found decent support for the time being.

EUR/USD levels to watch

The pair is now losing 0.21% at 1.1171 and a breakdown of 1.1153 (55-day sma) would open the door to 1.1119 (200-day sma) and finally 1.1043 (low Aug.5). On the other hand, the next hurdle lines up at 1.1357 (high Aug.23) followed by 1.1367 (high Aug.18) and then 1.1434 (high Jun.24).

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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