• The firm tone around the buck is weighing on the pair.
  • Spot retreats to levels last traded in late December 2017.
  • US Industrial Production expanded 0.7% MoM in April.

The robust pace of the greenback is now forcing EUR/USD to trade in the 1.1770/60 band, fresh multi-month lows.

EUR/USD weaker on USD-buying

The pair is now intensifying the leg lower, shedding ground for the third session in a row and navigating the area of fresh 2018 lows in the 1.1770/60 band, area last visited in mid-December 2017.

On the other hand, the greenback is extending its rally beyond the 93.60 level when tracked by the US Dollar Index, recording at the same time new 5-month peaks and always underpinned by the better tone in US yields.

In the data space, mixed US housing sector results saw Building Permits contracting less than expected in April at a monthly 1.8%, while Housing Starts dropped 3.7% MoM, missing consensus.

Further US data noted Industrial Production expanded 0.7% inter-month during last month and Manufacturing Production grew at a monthly 0.5%.

EUR/USD levels to watch

At the moment, the pair is losing 0.53% at 1.1776 and a breakdown of 1.1764 (2018 low May 16) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1553 (monthly low Nov. 7 2017). On the upside, the next hurdle aligns at 1.1898 (10-day sma) seconded by 1.1996 (high May 14) and finally 1.2021 (200-day sma).

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD clings to gains 0.6900 amid upbeat Aussie Retail Sales

AUD/USD clings to gains 0.6900 amid upbeat Aussie Retail Sales

AUD/USD is consolidating the upside above 0.6900, as the Australian Retail Sales surprise positively with 0.9% in May. The US dollar attempts a tepid bounce amid persisting risk-off mood and weaker yields. Powell in focus. 

AUD/USD News

USD/JPY regains 136.00 amid USD rebound, ahead of Powell

USD/JPY regains 136.00 amid USD rebound, ahead of Powell

USD/JPY is trading above 136.00 resuming weekly gains in Wednesday’s sluggish Asian session. The pair is tracking the renewed uptick in the US dollar, although the further upside appears capped amid risk-off flows and negative Treasury yields. Powell eyed. 

USD/JPY News

Gold looks to stabilize above $1,820, Powell in focus

Gold looks to stabilize above $1,820, Powell in focus

Gold price is attempting to hold itself above $1,820.00 ahead of Fed Powell. The US dollar is trading lackluster as investors ahead of Fed Chair Powell's appearance. A Descending Triangle formation dictates that the gold prices will remain rangebound a little longer.

Gold News

Why this move from Shiba Inu price could catch investors off guard?

Why this move from Shiba Inu price could catch investors off guard?

Shiba Inu price prepares for a quick retracement after nearly a week of recovery bounce. While this run-up was impressive, things are likely going to go slow for SHIB as investors continue to book profits.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures