EUR/USD keeps red near multi-year lows after US economic data

The EUR/USD pair maintained its offered tone near multi-year lows and failed to gain any respite following the US economic releases.

Currently trading around 1.0415-20 region, having dropped to the lower level since Jan. 2003, the pair lacked any buying interest after US CPI print for the month of Nov. came-in to show consumer prices rose  0.2% m-o-m, matching expectations. 

Also the Philly Fed Manufacturing Index surprised on the upside and jumped to 21.5 for December as against expected up-move to 9.0. Meanwhile, weekly jobless claims were mostly in-line with expectations (254K) and continued to reflect the underlying strength in the US labor market. 

Today’s US economic data provided additional support boost to the already strong US Dollar, which continues to surge after Wednesday’s hawkish FOMC statement, and was seen restricting even a minor recovery for the major.

Technical levels to watch

A follow through selling pressure might continue dragging the pair further towards Jan. 2003 lows support near 1.0335 region below which the pair is likely to turn vulnerable and break through 1.0300 handle towards testing 1.0200 round figure mark support. On the upside, any recovery might now confront immediate resistance at previous support near 1.0465 region and momentum above this immediate hurdle might now be capped at 1.0500 psychological mark.