A renewed bout of selling interest gripped the single currency following the release of dismal German factory orders data, now sending EUR/USD further to the south.
EUR/USD fails once again near 1.1000
Currently, EUR/USD trades -0.25% lower near fresh session lows of 1.0977, now heading towards next support at 5-DMA (1.0960). The main currency pair continues to push lower, as the latest German factories data fell for the second straight month and thus, weighed down on the euro.
German factory orders came in at -0.1% m/m in Jan, up from the previous revised reading of -0.2% booked in the last month of 2015. While on yearly basis, the industrial orders climbed 1.1% in January, after a plunge of a revised -2.2% in December and the sharpest decline in 2015.
The recent poor run of economic news from the Eurozone has been building the case for more ECB easing going forward, with markets expecting the central bank to slash depo rates as early as this week’s policy meeting. More so, the recovery in the US dollar against its major peers gained further momentum over the last hours, thereby driving EUR/USD further into the red. Meanwhile, the USD index rises 0.20% to 97.44.
With the German factory orders out of the way, focus now remains on the Euro zone Sentix investor confidence index and the Euro group meetings for further moves, ahead of the US labour market conditions report and Fed officials’ speeches due later in the NY session.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1000 (round figure). A break beyond the last, doors will open for a test of 1.1046/55 (200 & 20-DMA). On the flip side, the immediate support is placed at 1.0960/51 (5 & 10-DMA) below which at 1.0916/11 (100-DMA/ 1h 100-SMA) could be tested.
(Market News Provided by FXstreet)
The post EUR/USD Bears tighten grip post German data, near 1.0980 appeared first on forex-analytics.press.