EUR/USD drops to fresh 2016 lows near 1.0550

A bout of buying pressure around the buck has dragged EUR/USD to test fresh 2016 lows in the boundaries of 1.0560 on Wednesday.

EUR/USD weaker on upbeat US data

Spot met extra downside pressure after US Durable Goods Orders jumped 4.8% on a monthly basis during October, while Orders excluding the Transportation sector have expanded 1.0%, also surpassing initial forecasts.

The pair has quickly dropped to the area of yearly lows around 1.0560/55 in the wake of the results, opening the door for a visit to December’s low at 1.0538 ahead of March’s trough near 1.0520.

Later in the session, US advanced manufacturing PMI tracked by Markit is due followed by the Reuters/Michigan Index and New Home Sales.

EUR/USD levels to watch

The pair is now losing 0.70% at 1.0550 and a break below 1.0538 (low Dec.3 2015) would expose 1.0519 (low Apr.13 2015) and finally 1.0456 (low Mar.16 2015). On the other hand, the initial resistance aligns at 1.0652 (high Nov.21) followed by 1.0763 (high Nov.16) and finally 1.0826 (high Nov.14).

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