EUR/USD losing the grip below 1.1900
- Spot stays weak below 1.1900.
- USD steady after Monday’s advance.
- FOMC’s J.Powell in the limelight later in the session.
The demand for the single currency remains somewhat subdued early on Tuesday and is now prompting EUR/USD to slip back to the 1.1890/85 band.
EUR/USD attention to Powell
After advancing to fresh multi-week tops in the 1.1960/65 band at the beginning of the week, the pair sparked a correction lower amidst some recovery in the sentiment surrounding the greenback.
On the other side, the buck remains vigilant on the progress (or the lack of it) around the US tax reform. In this regard, President Trump is expected to meet with Senate Republicans at some point later today, while the Senate tax bill should be put to a vote on Thursday.
It is worth mentioning that auspicious results from the euro area and Germany have been lending extra support to the shared currency as of late as well as some supportive ECB-speak.
In the data space, EMU’s private loans figures are due along with M3 money supply and German consumer climate for the current month. Across the pond, the speech by FOMC’s J.Powell will grab all the attention seconded by October’s trade balance figures and house prices gauges by the S&P/Case-Shiller index.
EUR/USD levels to watch
At the moment, the pair is losing 0.08% at 1.1889 and a breakdown of 1.1822 (10-day sma) would open the door to 1.1777 (55-day sma) and finally 1.1713 (low Nov.21). On the other hand, the next hurdle lines up at 1.1961 (high Nov.27) followed by 1.2033 (high Sep.20) and then 1.2069 (high Aug.29).