EUR/USD comes down to test 1.1330, 200-week SMA
- Spot comes under further pressure near 1.1330.
- The march north in the greenback remains unabated.
- German Industrial Production contracted 0.4% MoM in December.
Another bout of selling pressure is now pushing EUR/USD to visit the 1.1330 area, where sits the critical 200-week SMA.
EUR/USD navigates 2-week lows
There seems to be no respite for the shared currency this week, now forcing spot to drop further and test fresh mutli-day lows in the 1.1330 area.
The march north in the greenback, in the meantime, stays well and sound for the sixth session in a row so far today, always on the back of the persistent deterioration in the sentiment surrounding the risk-associated complex.
Earlier in the session, German Industrial Production contracted 0.4% MoM during the last month of 2018, showing some improvement from November’s 1.3% contraction.
Across the pond, Fed’s mega-dovish VP R.Clarida is due to speak, whereas weekly Initial Claims and Consumer Credit figures will be published in the calendar.
What to look for around EUR/USD
The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP in the bloc and the persistent negative streak from German fundamentals. On the political scenario, May’s EU parliamentary elections should start to gather relevance with the days, paying special attention to the potential advance of populism in the region.
EUR/USD levels to watch
At the moment, the pair is losing 0.23% at 1.1336 and a break below 1.1331 (low Feb.7) would aim for 1.1329 (200-week SMA) en route to 1.1289 (2019 low Jan.24). On the other hand, the next hurdle emerges at 1.1390 (55-day SMA) seconded by 1.1433 (100-day SMA) and finally 1.1442 (38.2% Fibo of the September-November drop).