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EUR/USD dips to 1.3170

FXStreet (Edinburgh) - The single currency is now rapidly losing the grip vs. the greenback, dragging the EUR/USD to test fresh lows in sub-1.3180 levels.

EUR/USD focus on German CPI

After hitting weekly highs above 1.3220, the pair is now on its way to test yesterday’s lows around 1.3160, as buying interest is quickly fading amongst investors. Ahead in the day, German flash inflation figures are due, with consensus expecting headline consumer prices to have expanded at an annual pace of 0.8% during August. Another revision of the US GDP for the second quarter is also due next ahead of the weekly report on the labour market. Camilla Sutton, Chief FX Strategist at Scotiabank, notes the technicals are bearish, adding, “with every short and medium term study warning of downside risk. There is temporary relief today, which should help ease the RSI away from 26. The next most important support level is the 50% Fibo retracement of the June 2012 to May 2014 rally at 1.3018… The downward EUR trend is too strong to fight and accordingly we are biased to position with it”.

EUR/USD significant levels

At the moment the pair is down 0.13% at 1.3174 with the next support at 1.3152 (trend low Aug.27) followed by 1.3105 (low Sep.6 2013) and finally 1.3089 (low Jul.19 2013). On the upside, a break above 1.3222 (high Aug.28) would open the door to 1.3297 (high Aug.22) ahead of 1.3324 (high Aug.20).

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