Pressure on EUR/USD

 If you’re trading or planning to trade EUR/USD, FX Street experts warn about the EUR remaining in a strength area so far throughout the day, putting pressure on the pair and sending it to session lows in the 1.0560 zone.

EUR/USD offered following US data

Renewed selling pressure on the pair during the first half of the week dropped 1 cent since yesterday’s tops amidst -1.0600s as the greenback seems to have caught up a little.

Expectations are high regarding a Fed move on March 15, keeping the USD underpinned. Reuters notes that the potentiality of a price hike by 25 bp next week exceeds 85%. This is to be expected as US yields are also mirroring the positive sentiment strengthening the American currency.

Economic figures show that the US trade deficit increased dramatically to $48.5 billion in January from $44.3 billion. On the other side of the pond,  in Germany, Factory Orders exceeded experts’estimates during January, with EMU’s GDP reflecting an economic growth in the region of 0.4% inter-quarter thru October – December.

Keep a weather eye on the charts

Currently, the pair is losing 0.14% at 1.0567, while a breakdown of 1.0499 (low Mar 3) has the potential to target 1.0492 (Mar.2/Feb 22 low) en route to 1.0452 (low Jan 11). Yet, the next resistance point is located at 1.0643 (high Mar 6) followed by the short-term resistance line at 1.0647 and the 1.0670, 100-day SMA.

Screen Shot 2017-03-07 at 15.13.46-636244928485561693.png

Image credit: FX Street


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