Euro feels the pressure on key support level

The Euro once again came under pressure against the US dollar in yesterday’s trading session after a European Central Bank (ECB) survey showed that the Eurozone banks tightened access to mortgages over the last three months and expected to continue doing so in the final quarter of 2021. 

The survey came two days before the ECB is due to release their latest assessment of the economic situation surrounding the Eurozone, paving the way for a decision in December on the continuation of the central bank’s bond-buying program.

A strong round of data out of the US also dealt a blow to the Euro and keeps expectations in the market that the US Federal Reserve will begin reducing their stimulus program before the end of the year which was introduced to counter the devastating effects of Covid 19.

The latest new home sales figures from America hit the market at 14%, smashing analysts’ expectations for a figure of 1.5% and well up on last months figure of -1.4% which was backed up by the Richmond Fed manufacturing index which came in at 14 against predictions for a figure of 1.5.

Looking ahead today, the focus will be on the ECB president Christine Lagarde who will give a speech to the market regarding the central banks intentions on monetary policy and later during the American session will see the release of the durable goods figure which is bound to create some volatility in the EUR/USD currency pair.

From a technical view, The Euro is once again looking very vulnerable and is struggling to stay above the $1.1597 key resistance level as we enter the European trading session.

The key to the EUR/USD fortunes today will be the release of the durable goods figure during the American session and a strong reading will all but guarantee a reduction in the bond buying program by the US Federal Reserve before the end of the year and the Euro will likely see more losses.