EUR/USD sinks to fresh lows near 1.1080

The downside momentum around the common currency is now gathering further steam, pushing EUR/USD further below the 1.1100 key support.

EUR/USD weaker on USD-buying

Stronger-than-expected ZEW Survey figures in both the euro area and Germany for the current month did nothing to spur some fresh demand into the single currency today, which keeps falling to levels last seen in early August vs. the greenback around 1.1080.

Spot keeps retreating today in response to a sharp pick up in the buying interest around the buck, giving away over a cent since Friday’s close in the 1.1200 neighbourhood following disappointing figures from US Non-farm Payrolls (156K).

On the opposite side, the US Dollar Index has regained the area above the 97.00 handle and navigates fresh 3-month tops, trading at shouting distance from July’s peaks in the 97.60/65 band.

Furthermore, USD has also found extra bids after Chicago Fed C.Evans advocated for a gradual tightening at his earlier comments in Sydney, albeit he admitted that policy ‘may well be changing soon’.

Ahead in the NA session, the Fed’s Labor Market Conditions Index is only due along with the speech by Minneapolis Fed N.Kashkari (2017 voter, neutral).

EUR/USD levels to watch

The pair is now losing 0.48% at 1.1082 and a break below 1.1076 (2014-2016 support line) would target 1.1058 (4-month support line) en route to 1.1043 (low Aug.5). On the other hand, the next up barrier is located at 1.1173 (200-day sma) followed by 1.1202 955-day sma) and finally 1.1248 (resistance line off 2016 high).