EUR/USD pierces 1.1200 after US releases

The selling interest around the single currency is now gathering extra traction, sending EUR/USD to test daily lows in boundaries of the key support at 1.1200 the figure.

EUR/USD weaker on USD-buying

Spot is extending its correction lower from daily highs in the mid-1.1200s after Initial Claims rose to 234K WoW, bettering estimates and taking the 4-Week Average to 235.25K from 241.00K.

Additional data from the US docket saw April’s Goods Trade deficit widening to $67.55 billion from March’s $65.05 billion and advanced Wholesale Inventories expected to contract at a monthly 0.3% in April.

In the meantime, spot remains under pressure amidst quite a moderate rebound of the greenback after bottoming out in the 96.80 region when measured by the US Dollar Index.

EUR/USD levels to watch

At the moment, the pair is losing 0.20% at 1.1197 and a break below 1.1167 (low May 24) would target 1.1073 (76.4% Fibo of 1.1300-1.0339) en route to 1.1023 (20-day sma). On the upside, the next resistance aligns at 1.1250 (high May 25) seconded by 1.1267 (2017 high May 23) and finally 1.1300 (high Nov.9 2016).