EUR/USD faded the earlier move higher beyond 1.1600 the figure and has now returned to the 1.1590/85 band, flirting with daily lows ahead of the opening bell in Euroland.
The escalation of trade jitters with US and China in centre stage and its potential effects on the EM FX has returned to the fore on Wednesday and is currently sustaining the risk-off sentiment, undermining any bullish attempts in spot at the same time.
In the meantime, the pair is extending the sideline theme seen since the start of September, with gains capped around 1.1660 and the 1.1500 neighbourhoods managing well to offer decent contention for the time being.
As mentioned, the trade-factor continues to prevail when comes to determine the price action, while easing concerns over Italy and its budget has somewhat mitigated the downside pressure so far.
Ahead in the day, Industrial Production figures in the euro area for the month of July are coming up next followed by US Producer Prices during August and speeches by FOMC’s Bullard and Brainard, all preceding the release of the Fed’s Beige Book.
EUR/USD Level’s To Watch Out For
At the moment, the pair is losing 0.08% since open. With our fib level 61.8 (1.16427) sitting around the daily resistance level. We would, in fact, look at breaking 1.15261 once this level has been broken we could see a deep push to the downside to maybe even reaching the monthly support level of 1.11900.