EUR/USD drops to lows near 1.1950 ahead of Sentix, Fedspeak

• The pair loses momentum and trades in the mid-1.1900s.
• USD well bid near 92.70 ahead of Fedspeak.
• German industrial data, EMU’s Sentix index due later.

The greenback is extending the buying interest for yet another week so far, forcing EUR/USD to test daily lows in the mid-1.1900s.

EUR/USD looks to data, Fedspeak

The pair keeps the offered tone at the beginning of the week and is looking to stabilize in the lower end of the recent range around 1.1950 following the sharp sell off in past sessions.

In fact, after breaking below the multi-month 1.2155-1.2555 range, spot seems to have found a comfort zone around 1.1950/30 amidst the persistent demand for the buck and some steady performance of yields of the US 10-year reference around 2.96%.

In the data space, German Factory Orders contracted more than expected 0.9% MoM in March while the Sentix Index is due later in the day. Across the pond, speeches by FOCM’s Bostic, Barkin, Kaplan and Evans should keep the attention on the buck.

On the positioning front, EUR speculative net longs retreated to the lowest level since late December 2017 during the week ended on May 1, according to the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is losing 0.13% at 1.1946 and a break below 1.1911 (2018 low May 4) would open the door to 1.1900 (psychological level) and finally 1.1718 (monthly low Dec.12 2017). On the other hand, the next upside barrier aligns at 1.2016 (200-day sma) seconded 1.2054 (10-day sma) and finally 1.2153 (low Mar.1).