The EUR/USD has lost nearly 115 pips during trading on Monday, tumbling from an intraday Asian session high of 1.0268 to a ten-day low of 1.0154 late in the US session.
The weakness of the pair is due to the climate of risk aversion that dominates the markets amid the deep crisis of energy in Europe that is driving prices to the highest in decades. The US dollar is the main beneficiary as a safe haven currency, with the DXY index jumping to 106.55 in the last hour, its highest level since last August 8.
Traders will be watching Tuesday for various data that could move the EUR/USD. The Eurozone and Germany will publish their ZEW index of economic sentiment and current situation for the month of August, while US to release July housing starts and industrial productionawaiting the key data of the week, the Fed Minutes that will be revealed on Wednesday, and that may give clues about the percentage increase in interest rates in September.
EUR/USD Levels
With the pair trading at time of writing above 1.0160, shedding 0.98% daily, the next support awaits at 1.0122, minimum of the month registered on August 3. Below the psychological zone 1.0100the next downside target will be at 0.9952floor of July 14 and of the last twenty years.
To the upside, the euro would need to recover above 1.0300 to regain momentum and try to touch the resistance located on the band 1.0365/70, where the August highs are, touched on the 10th and 11th of this month. Higher up, the barrier is around 1.0475July 1 ceiling.
Source: Fx Street
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