EUR/USD tumbles further to 1.1560 on stronger USD
- The single currency loses further momentum to 1.1560.
- The greenback gathers extra traction around the mid-95.00s.
- US ISM manufacturing coming in next in the NA session.
The selling bias surrounding the European currency has now picked up pace and is forcing EUR/USD to retreat to multi-day lows in the 1.1560 region.
EUR/USD weaker on USD-buying
A fresh wave of USD-buying is hurting the pair today and has quickly driven it below the key support at 1.1600 the figure, reaching new 7-day lows and partially eroding the rally seen in the second half of August.
Absent releases in Euroland today, the focus of attention will be on the US docket, where the ISM manufacturing is due along with the speech by Chicago Fed C.Evans.
In the meantime, volume and volatility are slowly returning to normal levels, as US markets will resume their activity today following Monday’s Labor Day holiday.
Other than the renewed bid tone around the buck, concerns around the US-China trade dispute remain well and sound, while headlines surrounding the Italian budged commenced to attract attention along with the yield spread between German and Italian 10-year bonds.
EUR/USD levels to watch
At the moment, the pair is losing 0.48% at 1.1564 and a break below 1.1545 (21-day SMA) would target 1.1508 (low May 29) en route to 1.1299 (2018 low Aug.15). On the flip side, the next up barrier aligns at 1.1633 (10-day SMA) seconded by 1.1734 (high Aug.28) and finally 1.1745 (high Jul.31).