EUR/USD weak, flirting with lows near 1.2260
- The pair comes under further selling pressure in the 1.2265/60 band.
- USD broadly bid above 90.00, G-20, trade, FOMC in the limelight.
- EMU’s Trade Balance figures next of relevance in Euroland.
The selling pressure around the European currency is piking up pace at the beginning of the week and dragging EUR/USD to the area of fresh lows in the 1.2265/60 band.
EUR/USD attention to G-20, ECB-speak
Spot is extending the leg lower so far on Monday, retreating for the fourth consecutive session amidst the generalized bid tone surrounding the buck. Adding to the weak note, the pair breached the key support near 1.2270, opening the door at the same time for a deeper pullback.
On the USD-side, the up move in the greenback has been sustained by yields of the US 2-year note climbing beyond the 2.30% region, levels last traded a decade ago. Yields of the key 10-year reference, in the meantime, are navigating the upper end of the recent range around 2.86%. That, plus a bias towards the risk-off sentiment, appear supporting the upside momentum in the buck.
Later in the session, Trade Balance figures are only due in Euroland along with the speech by ECB’s Y.Mersch. Across the pond, Atlanta Fed R.Bostic (voter, centrist) is also due to speak.
On the positioning front, EUR speculative net longs advanced to the highest level since January 30 in the week to March 13, according to the latest CFTC report.
EUR/USD levels to watch
At the moment, the pair is retreating 0.22% at 1.2263 facing the next support at 1.2206 (low Feb.9) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1). On the other hand, a break above 1.2339 (10-day sma) would target 1.2414 (high Mar.14) en route to 1.2446 (high Mar.8).
