The shared currency is now falling further, dragging EUR/USD
to test fresh 3-month lows in the 1.0880 area.
EUR/USD around
1.0880 ahead of US data
The pair has rapidly intensified its
weekly decline, losing more than six big-figures since October tops in the
1.1500 neighbourhood.
The likeliness of the ECB announcing additional
easing measures at its December meeting and the increasing probability of a
Fed’s lift-off next month have exacerbated the divergence of monetary policy
between the Federal Reserve and the European Central Bank, bringing in renewed
selling pressure to the euro.
EUR/USD levels to
watch
As of writing the pair is retreating 0.76% at 1.0879 with
the immediate support at 1.0847 (low Aug.5) ahead of 1.0808 (low Jul.20) and
finally 1.0519 (low Apr.13). On the other hand, a break above 1.0970 (76.4% Fibo
of 1.0808-1.1713) would open the door to 1.1085 (downtrend from 1.1496) and then
1.1104 (200-day sma).
