The offered bias around the European currency has gathered extra traction today, now dragging EUR/USD to the area of weekly lows around 1.0840.
EUR/USD focus shifted to 1.0820
The pair has reverted the initial positive tone and dropped to fresh lows around 1.0840 amidst a continuation of the recovery in the greenback, which clinched the vicinity of 99.80 when tracked by the US Dollar Index, or 3-week lows.
Adding to USD-buying, Initial Claims rose to 236K WoW, surpassing estimates and taking the 4-Week Average to 243.50K from 243.00K. Further data saw Producer Prices rising at an annualized 2.5% in April and 0.5% inter-month, while Core prices also beaten expectations, advancing 0.4% MoM and 1.9% YoY.
Spot stays on the defensive since Monday’s tops above 1.1000 the figure, all against the backdrop of a robust pick up in the demand for the buck after recording fresh 2017 lows at the beginning of the week.
EUR/USD levels to watch
At the moment, the pair is retreating 0.10% at 1.0856 and a break below 1.0839 (low May 10) would aim for 1.0827 (200-day sma) and finally 1.0819 (low Apr.24). On the flip side, the initial hurdle lines up at 1.0900 (high May 10) seconded by 1.0916 (23.6% Fibo of the April-May rally) and then 1.0935 (high May 9).