EUR/USD challenges 1.1200 as dollar picks up

The shared currency is losing the grip on Wednesday, now relegating EUR/USD to test the 1.1200 neighbourhood.

EUR/USD focus on Draghi, data

The pair has managed to rebound from sub-1.1200 levels on Tuesday, with the upside being so far limited around overnight tops near 1.1220.

The renewed tone in the greenback has been behind the ongoing down move in spot as of late, influenced as well by alternating RO/RO trends.

Later in the session EUR/USD will remain in centre stage in light of the Exchange of Views by President Draghi on ‘Current developments in the euro area’ in Berlin.

Across the pond, Yellen’s testimony before the House Panel will take the bulk of the markets’ attention, followed by Durable Goods Orders and speeches by St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (voter 2017, dovish) and Cleveland Fed L.Mester (voter, hawkish and one of the triple dissenters at the last FOMC meeting).

EUR/USD levels to watch

The pair is now losing 0.10% at 1.1206 and a breakdown of 1.1188 (low Sep.27) would open the door to 1.1158 (200-day sma) en route to 1.1133 (2014-2016 support line). On the flip side, the next hurdle aligns at 1.1267 (resistance line off 2016 high) ahead of 1.1329 (high Sep.8) and finally 1.1367 (high Aug.18).