EUR/USD stays in lows near 1.1020 ahead of US data

The shared currency has resumed its bearish note at the end of the week, with EUR/USD navigating the area of daily lows around 1.1020.

EUR/USD focus on US Retail Sales

The pair has lost upside momentum after yesterday’s bull run to the 1.1055/60 band, now returning to the low-1.1000s following a pick up in the demand for the US dollar.

Speculations of a rate hike by the Federal Reserve at its meeting in December continue to grow bigger and remains the exclusive source of USD strength for the time being.

The recent FOMC minutes highlighted the ‘data dependent’ stance of the Committee albeit it gave a strong signal that Fed Funds could tick higher by year-end. In that regard, and later in the NA session, US Retail Sales for the month of September are to be published along with the flash gauge of Consumer Sentiment tracked by the Reuters/Michigan Index.

Investors will also look for clues on monetary policy at today’s Boston Fed Conference, where Boston Fed E.Rosengren (voter, dovish) and Chair J.Yellen are due to speak.

EUR/USD levels to watch

The pair is now losing 0.35% at 1.1019 and a break below 1.1001 (7-month support line) would target 1.0950 (low Jul.27) en route to 1.0909 (low Jun.24). On the other hand, the next up barrier is located at 1.1173 (200-day sma) followed by 1.1240 (resistance line off 2016 high) and finally 1.1279 (high Sep.26).