EUR/USD pair hitting fresh monthly lows

 

The selling pressure around the shared currency remains unabated, with the EUR/USD pair hitting fresh monthly lows following the release of US durable goods orders. 

The pair held weaker and failed to gain any respite after the US durable goods orders recorded a better-than-expected growth of 1.7% m-o-m in August, rebounding sharply after last month’s sharp contraction of 6.8%.

 The gains were primarily driven by a rebound in transportation goods, with core capital goods orders posting a modest rise of 0.2% during the reported period.

The headline reading surpassed even the most optimistic expectations and remained supportive of the already strong sentiment surrounding the US Dollar, eventually kept the major languishing near its weakest level since August 18.

Today’s US economic docket also features the release of pending home sales data for the month of August. The key focus, however, would be on the eagerly awaited remarks by the US President Donald Trump on his tax reform agenda.

   •  US tax cuts: Later and smaller – Westpac

In the meantime, traders will also take cues from scheduled speeches by Minneapolis Fed President Neel Kashkari and the Federal Reserve Governor Lael Brainard. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: “So far, the pair bottomed at 1.1730, and acceleration through the level should lead to an extension towards the 1.1690/1.17000 region, en route to August low at 1.1661.”

“The immediate resistance, on the other hand, comes at 1.1770, followed by 1.1810. Beyond this last, the pair has room to extend its recovery up to 1.1850” she added.

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