EUR/USD dips to lows near 1.0380 ahead of US ISM

The buying interest around the buck is now putting EUR/USD under further downside pressure, currently testing the area of daily lows in the 1.0385/80 band.

EUR/USD attention to US releases

Spot is losing further ground during the first half of the week amidst a strong performance of the buck, at the same time leaving the door open for a potential visit to 14-year lows in the mid-1.0300s seen on December 20.

EUR paid little attention to the earlier release of the advanced German inflation figures, coming in higher than expectations during December. Previously, German unemployment decreased by 17K during the same period while the jobless rate stayed put at 6%.

Furthermore, and according to the latest CFTC report, EUR speculative net shorts have been trimmed to levels last seen in late June 2016 during the week ended on December 27.

On the US data front, the manufacturing sector will take centre stage later in the session in light of the gauges by Markit and the ISM for the month of December.

EUR/USD levels to watch

The pair is now losing 0.64% at 1.0388 facing the next support at 1.0369 (low Dec.28) ahead of 1.0350 (2016 low Dec.20) and finally 1.000 (psychological level). On the other hand, a breakout of 1.0534 (high Jan.2) would target 1.0654 (spike Dec.30) en route to 1.0690 (55-day sma).