FXStreet (Edinburgh) - The weakness surrounding the shared currency is intensifying on Wednesday, dragging the EUR/USD to fresh 2014 lows around 1.3340.
EUR/USD hurt by risk aversion
A generalized sentiment favouring risk-off trade has now irrupted in the global markets, pushing spot to print fresh ytd lows in the boundaries of 1.3340. In the data front, there were no encouraging releases with German Factory Orders contracting in June and the Italian economy still submerged into recession figures. “The unexpected break of the strong support at 1.3400 resulted in a low of 1.3360. Downward momentum remains strong and barring a move back above 1.3400, the current down-move is expected to extend lower towards 1.3345/50 but a sustained drop appears unlikely for now”, signaled Quek Ser Leang, FX Strategist at UOB Group.
EUR/USD levels to watch
As of writing the pair is retreating 0.28% at 1.33380 facing the immediate support at 1.3318 (low Nov.8 2013) followed by 1.3317 (weekly cloud base) and finally 1.3295 (low Nov.7 2013). On the upside, a breakout of 1.3377 (high Aug.6) would target 1.3425 (high Aug.5).