EUR/USD clinches new 2019 lows at 1.0922, eyes on Draghi, US data

• EUR/USD moves lower to fresh YTD lows.
• USD-buying keeps weighing on the pair.
• Spot now faces the next support in the 1.0840 region.

Sellers keep dominating the sentiment on Thursday and are now motivating EUR/USD to print fresh yearly lows at 1.0922.

EUR/USD down on USD-buying, looks to data

The pair has accelerated the downside today and extends further the breakdown of the key barrier at 1.10 the figure on Wednesday, testing the vicinity of 1.0920 on the back of the continuation of the bid note in the buck.

In the docket, GfK’s Consumer Climate came in at 9.9 for the month of October, bettering estimates and adding to Wednesday’s lacklustre rebound in Business Climate tracked by the IFO survey.

In the meantime, the Greenback keeps pushing higher and is looking to consolidate the recent breakout of the key barrier at the 99.00 mark, always amidst steady US yields and renewed optimism on the US-China trade front.

Later in the day, ECB’s Draghi will speak in Frankfurt along with board member A.Enria.

What to look for around EUR

EUR recorded fresh 2019 lows in levels just above 1.0920 earlier today, as investors’ sentiment remains sour and without any hint of getting any better in the near term. Following Monday’s results, any recovery in the region appears to take longer than expected in light of the poor advanced PMIs. The unremitting slowdown in the bloc also justifies the looser for longer monetary conditions by the ECB and adds to the probability that the German economy could slip into technical recession in Q3. Adding to this gloomy scenario, potential US tariffs on imports of EU cars remain well on the table, while persistent uncertainty around Brexit adds to the downbeat outlook.

EUR/USD levels to watch

At the moment, the pair is down 0.10% at 1.0931 and a breach of 1.0922 (2019 low Sep.3) would target 1.0839 (monthly low May 11 2017) en route to 1.0569 (monthly low Apr.10 2017). On the upside, the next hurdle aligns at 1.1017 (21-day SMA) followed by 1.1109 (monthly high Sep.13) and finally 1.1163 (high Aug.26).