EUR/USD finds some respite near 1.0870

The weekly decline in the European currency seems to have found some support around 1.0870 vs. the dollar, with EUR/USD now bouncing to the 1.0880/85 band.

EUR/USD in 7-month lows

Spot is closing its third consecutive week with losses, shedding more than 4 cents since tops around 1.1280 seen in mid-September.

The solid sentiment around the greenback stays the almost exclusive driver behind the pair’s nose-dive, although dovish comments by President Draghi at the ECB meeting on Thursday have prompted sellers to step in as well, all collaborating with the downside to fresh multi-month troughs.

In the data space, flash Consumer Confidence in the region measured by the European Commission has come in at -8.0, matching previous estimates.

Looking ahead, it’s PMI-day on Monday in Europe and US along with the Chicago Fed National Activity index.

EUR/USD levels to watch

The pair is now losing 0.42% at 1.0882 and a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015). On the flip side, the initial hurdle aligns at 1.0994 (2014-2016 resistance line) followed by 1.1041 (post-ECB spike Oct.20) and then 1.1070 (4-month resistance line).