EUR/USD is running out of hope to avoid dropping to the lower end of its 1.1200-1.1600 range as the ECB nL1N20A0JQ and signs of economic weakness pile pressure on the euro.
Highlighting the increasing concerns of slower euro zone economic growth, data showed new car registrations in Europe fell for the fifth consecutive month [ Click here
], and Fitch ratings cut its 2019 GDP growth forecast to 1.0 percent nFWN20A0R0
ECB board member Benoit Coeure added to the
downbeat sentiment by saying
the economic slowdown is stronger and broader that what was expected and that
inflation's path will be shallower.
EUR/USD sank to a new low but stalled short of November's 1.1216 low.
EUR/USD longs did get some relief though.
Coeure said there might be scope for another growth-supporting
TLTRO and U.S. January industrial production came in well below forecasts.
EUR/USD bounced, but the rebound
has been meager.
Traders are reluctant to rally EUR/USD as the U.S. Commerce Department's report on auto imports is due soon nL1N2060NI
, which could result in tariffs on imports of European autos into the U.S. Technicals highlight bear risks as RSIs are biased down and consolidation of long-term losses persists.
A break below
1.1200 should see 1.0850/1.0950 support targeted.