- The pair keeps the negative tone at the end of the week.
- The greenback reverts initial negative and trades near 93.70/80.
- US G-7 meeting grabs all the attention today and tomorrow.
After testing fresh lows in the 1.1730 region, EUR/USD managed to attract some dip-buyers and is now hovering over the 1.1750/60 band.
EUR/USD weaker on Italian woes, USD-buying
The pair keeps correcting lower after clinching fresh tops in the 1.1840 region earlier in the week, dropping around a cent to the 1.1730 region, where some decent support appear to have emerged.
Renewed concerns over the Italian political front boosted yields of Italy’s 10-year benchmark and at the same time widened the spread vs. its German peer, spooking investors and collaborating with the downbeat sentiment in EUR.
Further out, German Industrial Production and Trade Balance figures disappointed expectations during April, adding to the selling mood around the shared currency.
Looking ahead and with the US-China and US-EU trade conflicts in centre stage, the 2-day G-7 meeting will kick in in Quebec (Canada).
EUR/USD levels to watch
At the moment, the pair is losing 0.31% at 1.1762 and a break below 1.1728 (low Jun.8) would target 1.1718 (low dec.12 2017) en route to 1.1695 (10-day sma). On the flip side, the next hurdle is located at 1.1840 (high Jun.7) followed by 1.1854 (38.2% Fibo of 1.2413-1.1508) and finally 1.1998 (high May 14).
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