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  • The pair remains on the defensive and prints lows near 1.1310.
  • The greenback extends its march north to the vicinity of 96.80.
  • US Retail Sales, NY Empire State index next of relevance in the docket.

The selling pressure around the single currency stays well and sound so far this week, with EUR/USD probing fresh 2018 lows in the 1.1320/15 band.

EUR/USD looks to Turkey

The pair is prolonging the leg lower for yet another session on Wednesday, dropping to the vicinity of the key support at 1.1312 (July 2017 low) where it seems to have found some contention for the time being.

The selling bias surrounding the EM universe, particularly the Turkish Lira, appears somewhat alleviated today, although trade concerns involving the US, China, EU and Turkey continue to lend oxygen to the buck and thus collaborating with the downside.

Absent releases in Euroland, all eyes should be on the US docket, where July’s Retail Sales and the manufacturing gauge from the NY Empire State will be in centre stage.

EUR/USD levels to watch

At the moment, the pair is down 0.11% at 1.1332 facing the next support at 1.1317 (2018 low Aug.15) seconded by 1.1312 (low Jul.5 2017) and then 1.1300 (psychological level). On the upside, a breakout of 1.1494 (10-day SMA) would aim for 1.1591 (21-day SMA) and finally 1.1629 (high Aug.8).