EUR/USD paving the way for a test of 1.0820?

The selling mood around the shared currency is picking up extra pace at the end of the week, relegating EUR/USD to trade as low as the 1.0870 region.

EUR/USD in multi-month lows

The solid buying pressure surrounding the buck is fuelling the downside in the pair to levels last seen in early March, opening at the same time the door for a potential visit of the key support area around 1.0820, March’s lows.

Sellers have clustered around EUR after President M.Draghi has argued on Thursday that the Governing Council stayed away from any discussion on the possibility of tapering its ongoing QE programme, leaving all the attention to the December meeting.

Data wise in Euroland, EMU’s advanced Consumer Confidence gauged by the European Commission is expected to have improved a tad to -8.0 for the current month, 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 0.47% at 1.0877 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).