EUR/USD flirting with lows near 1.1720

The selling bias around the shared currency seems to have resumed during the European morning on Wednesday, now dragging EUR/USD to test the 1.1730/20 band, near session lows.

EUR/USD extend the weekly correction

Spot stays in depressed levels so far this week, trading in the low-1.1700s on the back of the broader recovery around the greenback.

In fact, gauged by the US Dollar Index, the buck gathered extra traction on Tuesday in the wake of solid readings from the JOLTs Jobs Openings, printing a record high in June. DXY climbed to multi-day tops near 93.80 in the wake of the results, although losing some momentum afterwards.

The price action around EUR remains driven by USD-dynamics so far, always against the backdrop of absent significant releases in Euroland this week and with US inflation figures as the salient event on Friday.

The prospects of a correction lower in the pair stay supported by the recent activity in EUR futures markets, as well as the inability of spot to regain the area around recent tops beyond 1.1900 the figure.

Data wise in US, , weekly mortgage applications, advanced Q2’s non-farm productivity and unit labor costs are due later in the NA session ahead of the EIA’s report on US crude supplies.

EUR/USD levels to watch

At the moment, the pair is retreating 0.20% at 1.1730 nand a breakdown of 1.1719 (low Aug.9) would target 1.1667 (21-day sma) en route to 1.1611 (low Jul.26). On the other hand, the next hurdle aligns at 1.1785 (10-day sma) seconded by 1.1824 (high Aug.8) and finally 1.1893 (high Aug.4).