EUR/USD deflates to 1.1190 ahead of US PCE

The shared currency is now losing some upside momentum, with EUR/USD now easing to the 1.1190 area.

EUR/USD focus on US data

The pair has so far faded the spike towards daily highs around 1.1210, now returning to sub-1.1200 levels ahead of US inflation figures gauged by the PCE and Personal Income/Spending in the US economy.

Spot keeps deriving support from the renewed offered bias surrounding the US dollar, particularly since last week’s dovish FOMC meeting and disappointing Q2 GDP figures. Today’s strong drop in USD/JPY has been also adding to the USD-weakness, after market participants perceived the recently announced stimulus package as ‘insufficient’.

EUR/USD levels to watch

The pair is now gaining 0.24% at 1.1190 facing the initial hurdle at 1.1208 (high Aug.2) followed by 1.1237 (100-day sma) and then 1.1280 (base of the 8-month rising channel). On the flip side, a breakdown of 1.1078 (200-day sma) would target 1.0950 (low Jul.25) en route to 1.0913 (post-Brexit low Jun.24).