FXStreet (Edinburgh) – The demand for the single currency remains subdued during the European afternoon, with EUR/USD now testing the lower end of the range near 1.0860.
EUR/USD lower on risk-on trade,
Auspicious results from the German ZEW Survey and the final inflation figures in the euro area during December have failed to ignite some lasting recovery in the pair (if any at all), which is so far posting its second consecutive session with losses.
In the meantime, the US markets will return to the normal activity today, where the NAHB index and the TIC Flows will be in the limelight later in the session.
EUR/USD levels to watch
The pair is down 0.28% at 1.0867 and a break below 1.0798 (61.8% Fibo of 1.0538-1.1059) would aim for 1.0709 (low Jan.5) and then 1.0538 (low Dec.3). On the upside, the next hurdle aligns at 1.0987 (high Jan.15) followed by 1.0997 (100-day sma) ahead of 1.1059 (high Dec.15).
(Market News Provided by FXstreet)