EUR/USD drops further to 1.1085, EU Summit in focus

By FXStreet The EUR bears fought back control post-European open and sent the EUR/USD pair back below 1.11 handle, extending losses for the sixth straight session.

EUR/USD eyes Thursday’s low

Currently, EUR/USD trades 0.18% lower at fresh session lows of 1.1084, fading spike to 1.1139 daily high. The main currency pair came under renewed selling pressure and gave up 1.11 handle as risk-off environment persists this session amid the ongoing EU Summit centred on the UK-EU membership talks.

Moreover, weak German PPI data also weighed on the sentiment around the EUR and dragged the major further into the red. The German PPI inflation indices declined further in January, with the monthly change coming out at -0.7%, down from -0.5% previously, whilst the yearly print deteriorated to -2.4% from -2.3% in December.

Also, the upcoming US CPI report keeps the markets unnerved, as the crucial macro update from the US may spur some volatility, having major impact on EUR/USD.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance at 1.1150/53 (psychological levels/ Feb 18 High). A break beyond the last, doors will open for a test of 1.1205/10 (10-DMA/ 1h 200-SMA). On the flip side, the immediate support is placed at 1.1068/65 (Feb …read more

Source:: FX Street