EUR/USD putting 1.0900 to the test, Fedspeak eyed

The demand for the single currency stays depressed so far this week, with EUR/USD now piercing the critical 1.0900 support.

EUR/USD focus on Fedspeak

The sell off in the pair remains well and sound so far today, particularly exacerbated after Macron became the next French President on Sunday, thus alleviating risks of a pick up in populist trends across the Old Continent.

On the USD-side, positive Fedspeak on Monday following comments by Cleveland Fed L.Mester collaborated with the strong rebound in the buck, helped in turn by the broad-based selling mood in the risk-associated space.

On the data front today, German trade surplus shrunk more than expected in March while Industrial Production contracted at a monthly 0.4% during the same period, missing consensus.

In the US, the NFIB index came at 104.5 vs. 104.0 expected while the IBD/TIPP gauge will be next on tap. Further Fedspeak is also in the pipeline, with speeches by Minneapolis Fed N.Kashkari (voter, dovish), Boston Fed E.Rosengren (2019 voter, hawkish) and Dallas Fed R.Kaplan (voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is retreating 0.17% at 1.0905 facing the next support at 1.0892 (low May 9) seconded by 1.0880 (low May 3) and finally 1.0850 (low Apr.27). On the upside, a break above 1.0934 (high May 9) would target 1.1020 (2017 high May 8) en route to 1.1300 (high Nov.9 2016).