EUR/USD under pressure near 1.1120 ahead of data

The selling pressure around the single currency persists on Wednesday and is now forcing EUR/USD to recede to daily lows in the proximity of 1.1120.

EUR/USD now looks to data

Spot gathers extra downside pressure on Wednesday and is now putting the key 100-hour SMA to the test in the 1.1120 region on the back of another pick-up in the demand for the greenback.

In the meantime, all the attention is predicted to be on the US-China’s ‘Phase One’ deal, with both countries expecting to sign it later in the day. The deal, however, leaves in place the current US tariffs on Chinese products, which could be removed when/if a ‘Phase Two’ is agreed between both parties later in the year.

Data wise in Euroland, German real GDP figures are coming up next seconded by EMU’s Industrial Production figures and Trade Balance results. Across the ocean, Producer Prices, the NY Empire State index, the Fed’s Beige Book and speeches by FOMC’s Harker and Kaplan are all expected in the NA session.

What to look for around EUR

Spot continues to struggle to break above the key 1.1140 region, home of the critical 200-day SMA, and sparked the ongoing correction lower instead. 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 retreating 0.03% at 1.1123 and faces the next up barrier at 1.1137 (200-day SMA) seconded by 1.1186 (61.8% of the 2017-2018 rally) and finally 1.1199 (high Dec.13 2019). On the downside, 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).