- The pair remains under pressure after breaking below the 1.1600 support.
- The greenback printed fresh 2018 highs at 95.56 and keeps the upper end of the range.
- US Philly Fed index and Initial Claims coming up next on the docket.
The European currency remains under heavy pressure so far this week and is forcing EUR/USD to break below the critical support at 1.1600 the figure.
EUR/USD looks to data, potential test of YTD lows
The pair is prolonging the weekly leg lower to levels below the key support at the 1.1600 milestone and is at the same time opening the door for a probable test of the 1.1500 neighbourhood.
The generalized bid tone around the greenback remains the exclusive driver behind the pair’s down move, which has accelerated as of late after breaking below the 21-day sma and failing to extend the subsequent bounce to the mid 1.1700s.
Looking ahead, spot should be under scrutiny in light of the release of the key regional manufacturing gauge by the Philly Fed later in the US docket as well as the usual weekly report on the labour market.
EUR/USD levels to watch
At the moment, the pair is losing 0.36% at 1.1597 facing the next support at 1.1586 (low Jul.19) seconded by 1.1527 (low Jun.29) and finally 1.1508 (2018 low May 30). On the other hand, a break above 1.1666 (21-day sma) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1746 (high Jul.17).
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