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  • Spot meets further downside pressure and tests 1.1260/70.
  • The greenback remains firm around the 97.00 area.
  • Brexit, Powell, trade to grab all the attention today.

It was nice while it lasted… EUR/USD has quickly given away the initial gains to the 1.1280/90 band and has now come under further selling pressure, printing new yearly lows in the vicinity of 1.1260.

EUR/USD weaker on USD-buying, looks to trade

The sentiment around the European currency is doing nothing but deteriorating further during the first half of the week, forcing the pair to grind lower to the 1.1270/60 band, or fresh 2019 lows.

A fresh bout of USD-strength is now driving spot lower amidst the generalized bearish scenario in the risk-associated universe, where US-China trade concerns remains the key issue in the very near term in light of the ongoing talks between US and Chinese officials in Beijing.

EUR/USD levels to watch

At the moment, the pair is losing 0.10% at 1.1263 and a break below 1.1215 (2018 low Nov.12) would target 1.1200 (psychological level) en route to 1.1118 (monthly low Jun.20 2017). On the upside, the next hurdle is located at 1.1356 (23.6% Fibo of the September-November drop) seconded by 1.1385 (55-day SMA) and finally 1.1419 (100-day SMA).