EUR/USD hits fresh daily lows at 1.1220

• Weaker euro retreats across the board. 
• Recovery from multi-month lows losses momentum, after finding resistance at 1.1250. 

The EUR/USD pair dropped marginally below Asian session lows and hit a fresh daily low at 1.1220. The pair continues to trade near the lows with a negative tone. 

The euro broke to the downside after moving sideways for several hours. The recovery from the 20-month lows it reached on Thursday at 1.1175 lost strength after being rejected from above the 1.1250 zone. The recent slide could point to the end of the correction and potentially clear the way for a test of last week lows, particularly if the pair falls below 1.1200. 

Last week, the dovish ECB meeting left the euro vulnerable. Today it is among the worst performers. The US dollar is posting mix results. Data from the US showed a bounce in retail sales during January but December negative numbers were revised even lower. 

Attention in Europe continues to be Brexit. The UK government is expected to present the motion that will be voted tomorrow. EUR/GBP is falling sharply from 2-week highs, back to 0.8565, contributing to the decline in EUR/USD. 

EUR/USD Levels to watch 

The euro is falling modestly and currently is testing the 1.1220/25 area.  A break lower could lead to a test of the next resistance at 1.1205, below the next one might lie at 1.1175 (Mar 7 low). On the upside, resistance levels might lie at 1.1235 (20-hour moving average), 1.255/60 (Mar 11 high) and 1.1290.