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  • The pair remains on the defensive in the 1.1330/20 band.
  • EMU Services PMI, Retail Sales coming up next.
  • US ISM Non-manufacturing, New Home Sales due later.

The renewed offered bias around the single currency keeps the downside pressure intact on EUR/USD, dragging it to the area of multi-day lows near 1.1320.

EUR/USD looks to data, trade

Spot is down for the third session in a row on Tuesday amidst the continuation of the recovery in the greenback, which stays on track to regain the 97.00 handle when tracked by the US Dollar Index.

The pair is grinding lower against the backdrop of rising skepticism over the possibility of a US-China trade deal in the next weeks, while risk-appetite trends also appear somewhat subdued.

Later in the morning, Services PMIs and Retail Sales are due in Euroland, while the ISM Non-manufacturing is expected to grab all the attention across the ocean in the NA session.

What to look for around EUR

In line with the broader risk-associated complex, the shared currency continues to look to developments from the US-China trade negotiations for near term direction. Looking at the broader picture, the ECB is expected to remain in ‘pause mode’ for the foreseeable future amidst the ongoing slowdown in the region, while investors have practically priced out any up move in rates this year. In addition, political headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be whether the populist choice manages to increase its presence in the Old Continent.

EUR/USD levels to watch

At the moment, the pair is losing 0.18% at 1.1318 and faces the next support at 1 1.1289 (low Jan.24) followed by 1.1234 (2019 low Feb.15) and finally 1.1216 (2018 low Nov.12). On the upside, a breakout of 1.1419 (high Feb.28) would target 1.1442 (38.2% Fibo of the September-November drop) en route to 1.1506 (200-day SMA).