EUR/USD tumbles to lows near 1.1060

The selling pressure is now picking up extra pace around the single currency, relegating EUR/USD to trade in the lower end of the range near 1.1060.

EUR/USD weaker on USD recovery, GBP strength

Spot is facing increasing selling pressure following a pick up in the demand for the greenback as well as a solid momentum around the Sterling following today’s steady stance from the BoE.

In fact, increasing bid tone around the British Pound has prompted EUR/GBP to nose-dive nearly 2% towards the 0.8860 region, collaborating with the offered bias in EUR.

In another direction, US Initial Claims rose to 265K WoW, missing initial estimates and taking the 4-Week Average to 257.75K from 253.00K. Further US data saw mixed results from advanced Nonfarm Productivity and Unit Labor Costs during the third quarter, up 3.1% and 0.3% inter-month, respectively.

Later in the session, Markit will publish its Services PMI gauge followed by ISM Non-Manufacturing and September’s Factory Orders.

EUR/USD levels to watch

The pair is now losing 0.31% at 1.1064 and a break below 1.0850 (low Oct.25) would aim for 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the upside, the next resistance is located at 1.1126 (high Nov.3) followed by 1.1188 (200-day sma) and then 1.1198 (6-month resistance line).

To learn more about this topic, check our video analysis.