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EUR/USD testing lows around 1.3560

FXstreet.com (Edinburgh) -The selling interest seems to be taking over the sentiment around the single currency now, pushing the EUR/USD to challenge overnight lows sub-1.3560.

EUR/USD eyes on German data

There are no visible reasons behind the recent intraday pullback to test session lows, although markets continue to be biased towards the risk-off tone. Ahead in the day, German Factory Orders will be the main risk event in the 17-nation region, with forecasts expecting a monthly expansion of 1.2% during August, leaving behind the previous 2.7% contraction. In the view of Emmanuel Ng, Strategist at OCBC Bank, “Our view remains on track and the pair may remain supported on dips pending further US fiscal developments this week with support seen towards 1.3500 before 1.3450”.

EUR/USD key levels

The pair is now losing 0.10% at 1.3567 and a breakdown of 1.3549 (MA10d) would target 1.3543 (low Oct.7) en route to 1.3538 (low Oct.4). On the flip side, the initial resistance lies at 1.3582 (high Oct.8) followed by 1.3591 (high Oct.7) and finally 1.3632 (high Oct.4).

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