EUR/USD under pressure around 1.2320
- Spot breaks below 1.2330, key support.
- DXY closer to 90.00.
- US data came in mixed.
The buying interest around the US Dollar stays unabated so far this week, keeping EUR/USD under downside pressure in the 1.2320 region.
EUR/USD in 2-week lows
The pair has accelerated the weekly correction lower to new multi-day lows in the 1.2325/20 band on Tuesday, always against the backdrop of a stronger demand for the greenback and a moderate rebound in yields of the US 10-year note.
USD keeps the bid note so far today, while US stock markets are staging a decent rebound and volatility tracked by the VIX index has dropped to the 30 area after clinching multi-month tops around 50 during early trade.
At the same time, spot keeps eroding the accelerated support line off YTD lows seen in early January and is now facing the likelihood of further weakness with the interim target at the 21-day sma, today at 1.2282.
On the data front, December’s US trade deficit widened more than initially forecasted to $53.1 billion, while the IBD/TIPP index came in at 56.7 (vs.55.4 expected) and JOLTs jobs openings dropped to 5.811 million in December (from 5.978 million).
EUR/USD levels to watch
At the moment, the pair is losing 0.40% at 1.2318 facing the immediate support at 1.2282 (21-day sma) seconded by 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2165 (low Jan.18). On the other hand, a breakout of 1.2522 (high Feb.2) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014).