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EUR/USD tumbles to session lows near 1.1370

  • The pair comes under further selling pressure and trades below 1.1400.
  • The greenback manages to keep the trade above the 96.00 handle.
  • EMU final December CPI figures next of relevance in the region.

Price action around EUR/USD remains flat in the second half of the week near the 1.1400 mark along with the prevailing sentiment in the FX universe.

EUR/USD looks to data, risk trends

Spot is down for yet another session on Thursday, putting the key 55-day SMA around 1.1380 to the test.

A recent pick up in the demand for the greenback and some dovish appreciations from President M.Draghi at his speech before the European Parliament earlier in the week appears to be weighing on the pair, extending at the same time the leg lower from last week’s tops beyond 1.1500 the figure.

In the data space, final December inflation figures in Euroland are due later although no fireworks are expected. In the US docket, Initial Claims are due seconded by the more relevant Philly Fed manufacturing index.

What to look for around EUR/USD

The continuation of the bearish sentiment around EUR seems to gathers steam following the improved tone in the buck and the recent cautious/dovish message from ECB’s Draghi. Moving forward, the ongoing slowdown in the euro area and upcoming events including discussions around the French budget, Brexit and EU Parliamentary elections in May should keep occasional bullish attempts well contained.

EUR/USD levels to watch

At the moment, the pair is retreating 0.10% at 1.1380 facing immediate contention at 1.1356 (23.6% Fibo of the September-November drop) seconded by 1.1306 (2019 low Jan.3) and then 1.1269 (monthly low Dec.14). On the upside, a break above 1.1424 (high Jan.16) would target 1.1442 (38.2% Fibo of the September-November drop) and finally 1.1467 (100-day SMA).

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