- The pair receded to sub-1.1700 levels, where some support emerged.
- The greenback remains bid beyond the 94.00 mark amidst higher yields.
- German ZEW survey missed estimates for the month of July.
The negative mood persists around the European currency during the first half of the week, motivating EUR/USD to briefly visit lows in the sub-1.1700 area, where dip-buyers apparently turned up.
EUR/USD weak on USD-buying
The pair is navigating fresh 2-day lows in the 1.1700 neighbourhood , as sentiment among traders seems to have shifted towards the greenback in a context where the risk-on trade dominates.
On the other side, higher yields in the US money markets have been sustaining the moderate recovery in the buck and thus lifting the US Dollar Index to fresh tops well north of the 94.00 mark, with investors keeping a close eye on the US-China trade front and the upcoming European tour by President Trump.
In the data space, German/EMU Economic Sentiment measured by the ZEW Survey disappointed expectations for the current month, also adding to the ongoing EUR bearish trend.
EUR/USD levels to watch
At the moment, the pair is losing 0.40% at 1.1704 and a break below 1.1691 (low Jul.10) would open the door to 1.1670 (10-day sma) and then 1530 (low Jun.19). On the flip side, the next hurdle emerges at 1.1791 (high Jul.9) seconded by 1.1853 (high Jun.15) and finally 1.1854 (38.2% Fibo of April-May drop).
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