EUR/USD approaches 1.0800, Dollar melts

EUR/USD is hovering over fresh multi-week tops in the 1.0800 neighbourhood following an increasing wave of USD-selling.

EUR/USD stronger on USD weakness

Spot clinched levels last seen in early December as the downside pressure around the buck remains nothing but abated so far today.

USD has intensified its decline following earlier comments by Trump’s trade advisor P.Navarro, who considered the euro as ‘grossly undervalued’.

Subsequent poor results from the US docket helped the buck deflate further, as Consumer Sentiment tracked by the Conference Board dropped to 111.8 for the current month and the Chicago PMI fell to 50.3 for the same period, both prints coming in below expectations. On the bright side, home prices tracked by the S&P/Case-Shiller Index rose at an annualized 5.3% in November, surpassing estimates.

The pair’s price action keeps confirming the view that the greenback has become increasingly (dangerously?) Trump-dependent, with the next relevant resistance in the 1.0820/50 band – Fibo retracement and March/October 2015 lows).

EUR/USD levels to watch

The pair is now gaining 0.89% at 1.0790 facing the next up barrier at 1.0801 (high Jan.31) ahead of 1.0820 (50% Fibo retracement of the Nov-Jan drop and low Mar.10 2015) and then 1.0848 (50low Oct.25 2015). On the other hand, a breakdown of 1.0685 (low Jan.31) would target 1.0651 (20-day sma) en route to 1.0617 (low Jan.30).