EUR/USD slips back to 1.0620, session lows

The better tone in the greenback is now prompting EUR/USD to intensify the downside to the area of daily lows in the 1.0625/20 band.

EUR/USD attention to CPI, ADP, OPEC

The pair has quickly faded yesterday’s spike to the 1.0660 region, sparking the current leg lower following a rebound in the demand for the buck.

In the meantime, EUR/USD is retreating for the first time after four consecutive advances so far today, bouncing off last week’s fresh 2016 lows near 1.0510 although finding quite tough resistance in the mid-1.0600s for the time being.

Spot is poised to remain under pressure in light of the critical OPEC meeting due later today as well as the release of advanced CPI figures in the euro area for the current month.

Additionally, and on the USD-side, the ADP report is expected to show that the US private sector has added 160K jobs in November, up from October’s 147K. Further publications in the US docket comprise Personal Income/Spending, inflation figures tracked by the PCE, the Chicago Fed PMI and Pending Home Sales, all preceding the Fed’s Beige Book. In addition, FOMC’s J.Powell (permanent voter, neutral) and Cleveland Fed L.Mester (voter, hawkish) are due to speak

EUR/USD levels to watch

The pair is now down 0.25% at 1.0623 facing the initial support at 1.0515 (2016 low Nov.24) followed by 1.0457 (2015 low Mar.16) and then 1.0332 (monthly low January 2003). On the other hand, a break above 1.0685 (high Nov.28) would target 1.0700 (23.6% of the November drop) en route to 1.0820 (low Mar.10).