EUR/USD remains depressed near 1-1/2 week lows, sub-1.1400 level

   “¢   Dismal German factory orders data exerted fresh pressure on the Euro.
   “¢   The continuation of the recent rally in the USD adds to the selling bias.

The EUR/USD pair held on the defensive through the mid-European session and is currently placed at the lower end of its daily trading range, around the 1.1385 region, or 1-1/2 week lows.

The pair extended its steady decline from near three-week tops, levels beyond the key 1.1500 psychological mark set last Thursday, and remained under some selling pressure for the fourth session in the previous five.

The shared currency continues to be weighed down by softer incoming economic data, this time from Germany that underlined the loss of momentum in the Euro-zone’s largest economy. The latest data showed German factory orders fell for the second consecutive month in December and marked their biggest monthly decline since June.

Meanwhile, the US Dollar continued strengthening on Wednesday, albeit modestly, and recovered all of its losses that came after a dovish FOMC message, which further collaborated to the pair’s slide below 50-day SMA to an intraday low level of 1.1380.

The bearish pressure remained unabated as market participants now look forward to a relatively thin US economic docket – featuring the delayed November US Trade Balance figures, and Prelim Unit Labor Costs/Nonfarm Productivity data for some short-term impetus.

Technical levels to watch