EUR/USD weaker, stays close to 1.0800

The selling interest remains unchanged around the single currency on Wednesday, now sending EUR/USD to test the lower bound of the daily range near the key support at 1.09800 the figure.

EUR/USD lower as USD keeps recovering

Spot continues to retrace the recent upside to fresh multi-month tops just above the 1.0900 handle seen on Monday, so far shedding over a cent and poised to challenge the key support at the 1.0800 mark.

Solid results from the US docket yesterday plus supportive Fedspeak gave the buck further excuses to extend its rebound from the mid-98.00s (Monday’s low) when tracked by the US Dollar Index (DXY).

In fact Dallas Fed R.Kaplan (voter, hawkish) said on Tuesday that rates should raise ‘gradually and patiently’, while added that he would support more rate hikes as long as the economy stays on the current track. In the same direction, US Consumer Confidence gauged by the Conference Board rose to the highest level since December 2000 at 125.6 for the month of March.

Looking ahead, it will be all about Article 50 during the European session, with PM Theresa May expected to speak at 1345GMT. Across the pond, Pending Home Sales will be the sole data release along with speeches by Chicago Fed C.Evans (voter, dovish), Boston Fed E.Rosengren (2019 voter, dovish) and San Francisco Fed J.Williams (2018 voter, centrist).

EUR/USD levels to watch

At the moment the pair is losing 0.07% at 1.0806 facing the immediate support at 1.0794 (low Mar.27) ahead of 1.0759 (low Mar.24) and finally 1.0704 (low Mar.16). On the flip side, a break above 1.0873 (high Mar.28) would target 1.0877 (200-day sma) en route to 1.0905 (high Mar.27).

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