EUR/USD tests 1.1820 post-US PCE

After briefly testing fresh weekly lows near 1.1820, EUR/USD has managed to regain some traction and is now navigating in the 1.1840/50 band.

EUR/USD stays weak, focus shifts to NFP

Spot extended its weekly decline to the 1.1820 region after US inflation figures gauged by the PCE matched estimates for the month of July. In fact, the Fed’s favourite inflation gauge showed core prices rising 1.4% YoY and 0.1% inter-month.

Additional US data saw personal income expanding at a monthly 0.4% in July while personal spending rose 0.3% MoM, below consensus. Furthermore, initial claims rose by 236K WoW, taking the 4-week average to 236.75K from 238.00K.

Later in the session, the Chicago PMI and July’s pending home sales are also due.

In the meantime, the pair remains under pressure amidst month-end flows and renewed USD-buying. In addition, ECB officials have expressed their concerns over the recent appreciation of the exchange rate, collaborating further with the downbeat sentiment around EUR.

EUR/USD levels to watch

At the moment, the pair is losing 0.29% at 1.1849 facing the next down barrier at 1.1814 (21-day sma) followed by 1.1710 (4-month support line) and finally 1.1662 (low Aug.17). On the upside, a break above 1.1905 (high Aug.31) would open the door to 1.2069 (2017 high Aug.29) and finally 1.2167 (50% Fibo of the 2014-2017 drop).