EUR/USD re-attempting 1.1600 amid resurgent US dollar demand

• USD bulls back in command, as escalating trade tensions dampen risk sentiment.
• ECB Bulletin underscores slowing growth in the Eurozone this year amid trade tensions.
• Corrective rally fizzles, the 1.1508 2018 low back on sight.

Having consolidated above the 1.16 handle in the Asian trades, the EUR/USD pair failed to resist above the last and fell sharply in the European session before finding fresh bids near the 1.1575 level. The buyers returned, prompting a minor recovery back near the 1.1590 region, where it now wavers.

Renewed jitters around the US-China trade dispute gripped the European markets, in turn lifting the demand for the US dollar across the board. The USD index stalled its profit-taking slide and resumed its bullish momentum, now testing the 95.30 level, up +0.25% on the day.

More so, the European Central Bank (ECB) warnings on the Eurozone and global growth outlook, in the wake of trade war fears, also added to the aggressive selling in the spot. In its monthly economic bulletin, the ECB noted that the downside risks to the global economy have intensified.

Looking ahead, the pair will continue to closely follow the US dollar price-action amid a lack of fresh Eurozone macro news and ahead of the US PPI and jobless claims releases.

EUR/USD Technical Levels

According to Jason Sen at DayTradeIdeas.com, “EURUSD resistance at 1.1610/20 but above 1.1630 today is a small buy signal targeting 1.1645 & minor resistance at 1.1660/65. Eventually, we look for a test of 1-month trend line resistance at 1.1690/1700.
Failure to beat resistance at 1.1610/20 targets 1.1580/75 (which held again yesterday) before support at the low of the range at 1.1520/10. A sustained move below 1.1490 targets quite good support at 1.1460/50 as we become oversold.”