EUR/USD accelerates the drop around 1.0600

The offered bias around the European currency has now accelerated, with EUR/USD hovering over the 1.0600 handle after briefly testing 1.0590/85.

EUR/USD weaker on US data

The pair’s downside momentum has gathered further traction as the demand for the US dollar has intensified following today’s data releases in the US docket.

Auspicious results from the ADP report and the Chicago PMI have combined with ‘in line’ readings from US inflation figures tracked by the PCE, all supporting a higher buck.

In addition, ECB sources hinted at the likeliness that the central bank could extend its current purchases of bonds beyond March 2017, likely to be announced at next month’s meeting.

Previously, EMU’s advanced CPI showed consumer prices are expected to keep the uptrend in November albeit at snail-pace.

EUR/USD levels to watch

The pair is now down 0.50% at 1.0597 facing the initial support at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the other hand, a break above 1.0685 (high Nov.28) would target 1.0700 (23.6% of the November drop) en route to 1.0820 (low Mar.10).