EUR/USD plummets to over one-week lows, below mid-1.1900s
• USD firms up during the early European session.
• Second-tier EZ data does little to lend any support.
The EUR/USD pair finally broke down of its Asian session consolidation phase and drifted into negative territory for the third consecutive session.
The pair extended last week’s rejection slide from just ahead of the 1.2100 handle and dropped to over one-week lows, below mid-1.1900s in the last minute. A fresh wave of US Dollar buying interest, backed by firming expectations for gradual Fed rate hikes through 2018, kept exerting downward pressure on the major.
On the economic data front, the second-tier EZ economic releases – German Industrial Production and German/French Trade Balance data, passed unnoticed, with the USD price dynamics acting as an exclusive driver of the pair’s downfall for the third straight session.
The pair has now retreated over 15-pips from last week’s near 4-month, with a follow-through weakness, led by additional long-unwinding pressure, now looking a distinct possibility amid absent major market moving economic releases.
Technical levels to watch
Bears would now be eyeing to challenge the 1.1900 handle, below which the pair seems to extend the corrective slide towards the 1.1875-70 horizontal support. On the upside, 1.1965 level now becomes an immediate resistance, which if cleared could lift the pair back towards the key 1.20 psychological mark.