EUR/USD drops further to 1.1220, daily lows

EUR/USD has quickly gathered downside traction early in the European morning, dropping to the 1.1225/20 band, or session lows.

EUR/USD attention to data, BoE

The pair is accelerating its decline following the opening bell in Euroland, nearing the 1.1220 area although still within the recent range.

The pair is extending its recent sideline pattern one more day, always looking to USD-dynamics for direction and against the backdrop of increasing speculations on the potential moves by the Federal Reserve in the next months, specially at the upcoming meeting.

That said, today’s US Retail Sales could prove to be crucial for rate hike expectations along with Friday’s CPI results. Market participants expect headline sales to have contracted at a monthly 0.1% during August, while consumer princes are seen rising at an annualized 1.0% during last month, up from July’s 0.8%.

EUR/USD levels to watch

The pair is now losing 0.22% at 1.1224 and a break below 1.1198 (2014-2016 support line) would target 1.1146 (200-day sma) en route to 1.1043 (low Aug.5). On the flip side, the initial hurdle aligns at 1.1274 (high Sep.14) followed by 1.1301 (resistance line off 2016 high) and finally 1.1329 (high Sep.8).