EUR/USD drops to 1.1910, session lows

• The pair retraced Monday’s spike to the boundaries of 1.2000.
• Renewed bid tone around the greenback weighs on spot.
• German ZEW, US Retail Sales next of relevance in the day.

The buying pressure around the greenback is forcing EUR/USD to recede further and re-visit the vicinity of 1.1900 the figure, or fresh daily lows.

EUR/USD looks to data, yields

After climbing to as high as the proximity of the 1.2000 milestone at the beginning of the week, spot lost upside momentum and sparked the ongoing 1-cent correction lower to the 1.1900 neighbourhood.

The pair is losing ground today in response to the renewed pick up in the demand for the greenback, which in turn is supported by yields of the key US 10-year note returning to levels beyond the 3.0% level.

In addition, advanced German Q1 GDP figures showed the economy is expected to expand at an annualized 1.6% and 0.3% inter-quarter, both prints coming in below estimates.

Later in the session, German ZEW survey is due along with EMU’s Industrial Production and US Retail Sales for the month of April.

EUR/USD levels to watch

At the moment, the pair is losing 0.05% at 1.1921 facing initial contention at 1.1891 (low May 11) seconded by 1.1823 (2018 low May 8) and finally 1.1768 (78.6% Fibo of November-February up move). On the other hand, a break above 1.1996 (high May 14) would target 1.2021 (200-day sma) en route to 1.2048 (38.2% Fibo of 1.2413-1.1823).