Having faced rejection near 1.0800 handle, the EUR/USD pair accelerated the downslide and has now dropped to fresh session low near mid-1.0700s.
Spot ran through fresh offers during early European session despite of better-than-expected German factory orders data that showed a strong growth on a monthly basis. In fact, orders rose 5.2% for the month of December, marking 2-1/2 year highs, much better-than previous month’s contraction of 3.6% (revised lower from -2.5% reported previously) but failed to boost the shared currency.
Meanwhile, a modest US Dollar recovery, following Friday’s late slide in wake of mixed US employment details, has been an exclusive driver of the pair’s slide at the start of a new trading week.
With German data out of the way, the US Dollar price dynamics would remain a key determinant of the pair’s movement on Monday in absence of any major market moving releases from the US.
Technical levels to watch
On a sustained weakness below 1.0750 level the pair is likely to accelerate the slide towards 1.0700 round figure mark, en-route 1.0675 horizontal support. A follow through selling pressure has the potential to drag the pair back towards 50-day SMA important support near 1.0600 handle.
On the upside, 1.0800 region (100-day SMA) remains immediate resistance to clear above which the momentum is likely to get extended towards 1.0840 level (Dec. 8 high) ahead of 1.0880 horizontal resistance.
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