EUR/USD drops to 1.1060

FXStreet (Edinburgh) - The selling interest is now picking up pace around the single currency on Tuesday, now dragging EUR/USD to the 1.1060 area, closer to session lows.

EUR/USD capped near 1.1100

The pair has been rejected in the vicinity of 1.1100 the figure today, triggering the ongoing weakness towards the area of session lows in the mid-1.1000s.

The increasing bid tone in the sterling following upbeat UK CPI figures during July could be behind the lower move in the pair via EUR/GBP, which is now challenging 2-week lows around 0.7040.

Ahead in the session, US Housing Starts (1.190 M exp.) and Building Permits (1.232 M exp.) are only due across the pond amidst a flat performance of the US dollar so far.

EUR/USD levels to watch

As of writing the pair is retreating 0.19% at 1.1057 and a breakdown of 1.1051 (low Aug.18) would aim for 1.1000 (psychological level) ahead of 1.0961 (low Aug.11). On the upside, the initial hurdle aligns at 1.1095 (high Aug.18) followed by 1.1190 (high Aug.13) and finally 1.1215 (high Aug.12).

Gold testing highs near $ 1120

Gold futures on Comex keep its bullish momentum intact for the second day in a row and heads higher towards fresh multi-week peak as markets build up on gains ahead of Wednesday crucial economic events from the US - CPI and Fed minutes.
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