EUR/USD challenges lows around 1.1400

• The index losses the grip and retreats to 1.1400, daily lows.
• The greenback reclaims the mid-96.00s and climbs to session peaks.
• Risk-off sentiment lends support to USD and sinks the pair.

The pick up in the demand for the greenback has sent EUR/USD to the negative ground for the first time after five consecutive advances.

EUR/USD weaker on sentiment

A wave of risk aversion is now hitting the risk-associated universe, with high-beta currencies, commodities and US stocks intensifying the correction lower amidst declining US yields and a strong rebound in the US Dollar Index.

Data wise today, US Housing Starts and Building Permits expanded more than expected during October, also lending extra support to the buck ahed of the API report on crude supplies.

Looking ahead, Brexit talks and Italian politics should keep investors vigilant in the Old Continent, while the performance of US yields, particularly in the 10-year note, is expected to drive the sentiment in the very near term.

EUR/USD levels to watch

At the moment, the pair is losing 0.38% at 1.1411 and a break below 1.1377 (21-day SMA) would target 1.1361 (10-day SMA) en route to 1.1214 (2018 low Nov.12). On the upside, the next hurdle emerges at 1.1502 (high Nov.7) seconded by 1.1515 (55-day SMA) and finally 1.1559 (100-day SMA).