Offered at 1.1173 (23.6% of 1.0517-1.1376)in Europe, the EUR/USD pair is now trading around 1.1160 and threatening to drop into losses ahead of US data release.
Focus on US data
US Personal spending and income growth is seen slowing in February. Upward revision of the US Q4 GDP released on Friday was largely due to personal consumption; hence USD bulls may feel demoralized if spending figure for February slows more than expected.
Post personal spending release, investors would shift their focus to goods trade balance, new home sales and Dallas Fed manufacturing index.
Action in oil prices and the resulting impact on the equities could also influence the demand for the funding currency EUR.
EUR/USD Technical Levels
The immediate hurdle is seen at 1.1173 (23.6% of 1.0517-1.1376), above which prices could run into resistance at 1.12. A violation there would expose 1.1257 (61.8% of 1.1714-1.0517). Conversely, acceptance below 1.1115 (50% of 1.1714-1.0517) would expose 1.1088 (50% of Mar 15 low-Aug 15 high) and 1.1041 (200-DMA).
(Market News Provided by FXstreet)