EUR/USD treading water around 1.0900

EUR/USD remains entrenched in the negative territory at the end of the week, meandering the 1.0890/1.0900 area amidst rising sentiment around USD.

EUR/USD attention on dollar, EMU data

The pair is retreating for the third consecutive week so far and trading in levels last seen back in March around 1.0880/90, opening at the same time the door for a potential test of the key support area at 1.0820, or March’s lows.

EUR has intensified its bearish sentiment after ECB’s M.Draghi confirmed on Thursday that there was no discussion on the likeliness of tapering the bond purchases under the current QE programme.

On the data front, Consumer Confidence in the euro region measured by the European Commission is only due later, while FOMC’s D.Tarullo (permanent voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) are due to speak later in the NA session.

EUR/USD levels to watch

The pair is now losing 0.32% at 1.0893 and a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015). On the flip side, the initial hurdle aligns at 1.0994 (2014-2016 resistance line) followed by 1.1041 (post-ECB spike Oct.20) and then 1.1070 (4-month resistance line).