FXStreet (Edinburgh) - After climbing to the vicinity of 1.3480 in early European trade, the EUR/USD is now correcting lower to test fresh lows around 1.3440.

EUR/USD hurt by IFO

Spot saw its upside halted after the German IFO indicator disappointed investors during June, falling in all of its components. Further data also showed that the ME Money Supply in the euro area expanded 1.5% on a yearly basis and Private Loans contracted below estimates 1.0% YoY. Next of note will be the US Durable Goods Orders, expected to have expanded 0.5% in June. “We have a slight loss of downside momentum and would allow for a very minor rebound. A negative bias will remain entrenched below the 1.3573 downtrend. We target initially the 1.3426 200 week ma en route to the 1.3295 November 2013 low”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

EUR/USD key levels

As of writing the pair is retreating 0.10% at 1.3449 with the next support at 1.3438 (2014 lows Jul.24) ahead of 1.3436 (76.4% of 1.3295-1.3894) and then 1.3399 (low Nov.21 2013). On the upside, a break above 1.3485 (high Jul.24) would target 1.3530 (high Jul.22) en route to 1.3549 (high Jul.21).

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