EUR/USD under pressure near 1.0700, US data eyed

The selling pressure around the single currency seems to be gathering further traction on Wednesday, with EUR/USD hovering over the key support at 1.0700.

EUR/USD now looks to US data

The outlook on the pair remains bearish and its perspective looks more fragile in light of the increasing buying interest around the greenback, which has managed to print yearly tops around 100.30 when gauged by the US Dollar Index.

Spot is losing ground for the eighth consecutive session so far, shedding around 6 cents since last Wednesday’s spike to the boundaries of 1.1300 the figure following the results from the US elections. However, the key support in the 1.0700 neighbourhood (YTD lows) seems to hold pretty well for the time being.

Later in the session, the greenback will take centre stage once again in light of the releases of US Industrial and Manufacturing Production, Capacity Utilization, the NAHB index and the DoE’s report on crude oil supplies. In addition, Philly Fed P.Harker (2017 voter, hawkish) is also due to speak.

EUR/USD levels to watch

The pair is now retreating 0.14% at 1.0709 facing the next hurdle at 1.0826 (high Nov.14) followed by 1.0848 (low Oct.25) and finally 1.0941 (20-day sma). On the other hand, a breakdown of 1.0706 (2016 low Nov.14) would target 1.0538 (low Dec.3 2015) en route to 1.0519 (low Apr.13 2015).

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