- The pair loses upside momentum and tests session lows.
- The greenback rebounds from 96.10, up smalls for the day.
- Markets’ focus remains US-China trade front and Turkey.
After testing the mid-1.1400s on Friday, EUR/USD has been losing momentum and is now navigates the 1.1420/15 band, or session lows.
EUR/USD looks to Turkey, trade
Spot is losing ground after three consecutive daily advances amidst a renewed pick up in the demand for the greenback, while market participants continue to look to headlines from Turkey and the US-China trade front.
In fact, the Turkish Lira managed to recover ground lost in past sessions following a series of announcements from the central bank, bringing in some respite to the EM FX universe and re-igniting the risk-on trade.
In the same direction, trade talks between US and China could resume at the end of the month following the visit of Chinese officials to the US, also lending some support to the risk sentiment.
In the data space, nothing scheduled today in Euroland, whereas Atlanta Fed R.Bostic is expected to speak later in the NA session.
EUR/USD levels to watch
At the moment, the pair is losing 0.18% at 1.1418 and a breakdown of 1.1299 (2018 low Aug.15) would target 1.1188 (61.8% Fibo of the 2017-2018 up move) en route to 1.1118 (monthly low Jun.20 2017). On the downside, the next support aligns at 1.1447 (high Aug.17) followed by 1.1508 (low May 29) and finally 1.1555 (21-day SMA).
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