/EUR/USD tumbles to lows near 1.2400 on USD strength | by Pablo Piovano | FXStreet

EUR/USD tumbles to lows near 1.2400 on USD strength | by Pablo Piovano | FXStreet

The now bid tone around the buck is pushing DXY to tops near 89.30. The pair loses momentum and trades in daily lows around 1.2415/10. EMU data came in mixed, US Consumer Confidence next of relevance. A bout of selling bias is now hurting the single currency and forcing EUR/USD to abandon the area of recent tops around 1.2480 and re-test the low-1.2400s, or daily troughs. EUR/USD now looks to data Fresh EUR-sellers re-emerged in the vicinity of the critical 1.2500 handle, sparking the current leg lower to the area of daily tops near 1.2400 the figure. In addition, the offered bias seems to have found some oxygen in the mixed tone from ECB-speakers. In fact, ECB’s E.Nowotny advocated for a gradual reduction of the current asset purchase programme, while Board member E.Liikanen stressed that the QE programme stays open ended. Previously, V.Vasiliauskas agreed with market forecasts for a rate hike at some point in mid-2019, adding that further discussion on changes to monetary policy is expected in June. On the data front, EMU’s M3 Money Supply expanded 4.2% on a year to February and Private Loans rose 2.9% YoY, both readings missing initial estimates. Further data saw Business Climate dropping more than expected in March, along with Services Sentiment and Industrial Sentiment. The greenback, in the meantime, keeps the recovery well and sound and is now pushing DXY to the 89.30 region after bottoming out in sub-89.00 levels during early trade. In the US data space, the S&P-Case/Shiller Index is next on tap followed by CB’s Consumer Confidence. EUR/USD levels to watch At the moment, the pair is retreating 0.26% at 1.2411 facing immediate contention at 1.2344 (10-day sma) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9). On the flip side, a break above 1.2477 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16).