EUR/USD tumbles further and tests 1.1100, session lows

  • EUR/USD loses the grip further and probes 1.1100.
  • The greenback remains bid and approaches YTD highs.
  • US CPI figures disappointed investors in December.

The now better tone in the dollar is forcing EUR/USD to recede to the area of weekly lows in the 1.1100 neighbourhood.

EUR/USD weaker despite poor US data

The pair has now retreated to weekly lows and threatens to breach the key support at 1.1100 the figure on the back of the increasing buying interest surrounding the buck, while the risk-on environment appears unaltered for the time being.

In fact, the US Dollar Index (DXY) is flirting with yearly tops above 97.50 despite US inflation figures came in short of expectations during December: headline prices tracked by the CPI rose at a monthly 0.2% and 2.3% from a year earlier, while consumer prices excluding energy and food costs rose 0.1% inter-month and 2.3% over the last twelve months.

There are no more data releases on the docket, while speeches by FOMC’s Williams and George should keep the attention on the dollar later in the NA session.

What to look for around EUR

Spot has managed well to keep the recovery from lows in the 1.1085/80 band well and sound so far, retaking the 1.1100 handle and now challenging the key barrier at the 20-day SMA near 1.1140. In the meantime, markets’ focus has now returned to the US-China’s ‘Phase One’ deal, likely to be signed in the next hours. On the more macro view, the slowdown in the region remains far from abated and continues to justify the ‘looser for longer’ monetary stance from the ECB. On the latter, we should have a more detailed assessment of the latest ECB meeting on Thursday with the publication of the bank’s Accounts.

EUR/USD levels to watch

At the moment, the pair is losing 0.25% at 1.1106 and a breach of 1.1094 (55-day SMA) would target 1.1085 (2020 low Jan.10) en route to 1.1064 (low Dec.20 2019). On the upside, the next up barrier emerges at 1.1147 (high Jan.13) seconded by 1.1186 (61.8% of the 2017-2018 rally) and finally 1.1199 (high Dec.13 2019).

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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.


GBP/USD unable to recover, barely above 1.3000

GBP/USD trades a handful of pips above the critical 1.3000 figure as looming BOE and Brexit weigh on market mood while the dollar remains the strongest.


Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.