EUR/USD: Pressure mounts at the 1.1020 support level – Bednarik

Bearish momentum continues to increase selling pressure on the pair with a critical support level at 1.1020 in sight, chief analyst at FXStreet’s Valeria Bednarik apprises. 

Key quotes

“EUR/USD is under selling pressure this Tuesday, as the greenback retains its strength, appreciating against most major rivals. The market mood improved on Monday, following the release of the US ISM Manufacturing PMI leading to gains in Wall Street.” 

“The EU released Industrial Producer Prices for December, which remained stable monthly basis, and unchanged at -0.7% YoY. After Wall Street’s opening, the US will release the January ISM-NY Business Conditions Index, previously at 39.1, and December Factory Orders, seen up by 1.2%, following a -0.7% reading in November.”

“The pair is trading at around 1.1050, not far from a daily low of 1.1042. (...) Chances of a steeper decline will increase on a break below 1.1020, while gains beyond 1.1100 seem quite unlikely at the time being.”