EUR/USD testing 1.1100 on US Philly index

EUR/USD lost further ground following the upbeat results from the Philly Fed index, currently gravitating around the 1.1110 region.

EUR/USD weaker on US data

Spot stays near the area of session lows after the Philly Fed Manufacturing index came on the strong side for the current month, rising to 38.8 vs. forecasts at 19.5 and April’s 22.0.

Further data from the labour market saw Initial Claims rising to 232K WoW and taking the 4-Week Average to 240.75K from 243.50K in the previous week.

The pair is shedding some ground after reaching fresh multi- month tops in the vicinity of 1.1170 during overnight trade following a moderate pick up in the demand for the greenback.

In fact, the US Dollar Index has regained some traction to the 99.60 region, as jitters on the recent Russia-gate appear somewhat mitigated today. However, the US political scenario should remain a source of volatility around the buck in the very near term, while chatter on a potential impeachment seems to gather traction in the media.

EUR/USD levels to watch

At the moment, the pair is retreating 0.45% at 1.1109 and a break below 1.1073 (76.4% Fibo of 1.1300-1.0339) would target 1.0935 (20-day sma) en route to 1.0826 (200-day sma). On the flip side, the next hurdle aligns at 1.1172 (2017 high May 18) followed by 1.1200 (psychological handle ) and finally 1.1300 (high Nov.9 2016).