EUR/USD turns negative below 1.1730

Spot faded the spike to 1.1755/60.
Jitters around Germany still weigh on EUR.
DXY pares losses and keeps the 94.00 area.

Pablo Piovano FXStreet

The single currency is now trading within the negative territory vs. the greenback on Tuesday, with EUR/USD hovering over the 1.1730/20 band ahead of the NA session.

EUR/USD stays under pressure, looks to Germany

After climbing to the 1.1760 area earlier in the session, the pair came under renewed pressure as investors continue to gauge the effervescence in the German political scenario

In this regard, Chancellor A.Merkel advocated for new elections after coalition talks failed and sparked the current political crisis.

On the USD-side, the greenback reverted the initial weak tone and is now looking to advance further north of the 94.00 handle, while market participants seem to have diverted their attention from the US tax reform for the time being.

In the data space, existing home sales for the month of October and the Chicago Fed national activity index will be the only data releases across the pond today, ahead of the API’s weekly report on US crude oil supplies.

EUR/USD levels to watch

At the moment, the pair is losing 0.06% at 1.1726 and a breakdown of 1.1718 (10-day sma) would target 1.1685 (21-day sma) and finally 1.1554 (low Nov.7). On the other hand, the next up barrier aligns at 1.1808 (high Nov.20) seconded by 1.1823 (high Nov.17) and then 1.1860 (high Nov.15).

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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