EUR/USD weaker, on its way to 1.18?

The buying interest around the greenback has forced EUR/USD to retreat from earlier tops in the 1.1860 region to the current area of session lows near the 1.1800 handle.

EUR/USD offered on US budget

After two consecutive daily advances, the pair met a wave of downside pressure after the US Senate approved the Republican-supported budget late on Thursday, paving the way at the same time for the implementation of the long-waited tax reform promised by President Trump.

Still around USD, President Trump will likely announce the successor of Chief J.Yellen in the upcoming days, where according to market chatter, (hawkish) candidate J.Taylor remains the front-runner.

Adding to the weaker scenario around the European currency, the Spanish government could suspend Catalonia’s autonomy on Saturday in response to persistent threats of independence by the region led by C.Puigdemont.

In the data space, EMU’s current account figures for the month of August are only due today ahead of US existing home sales.

EUR/USD levels to watch

At the moment, the pair is losing 0.34% at 1.1812 facing the next support at 1.1730 (low Oct.18) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). On the upside, a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2).