EUR/USD is approaching support at 1.0750 with Retail sales data on tap

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• The Euro extends losses after weak German factory orders
• Sluggish Eurozone data increases hopes of ECB rate cuts on early 2024
• The EUR/USD approaches an important support area at 1.0750.

The Euro remains offered on Wednesday’s European market opening times. German Factory orders have disappointed,  increasing concerns about a deep recession in the Euro Area and adding negative pressure on the Euro.

German factory data weighs on the Euro

New orders for products manufactured in Germany dropped 3.7% in October against market expectations of a flat performance, following a 0.2% increase in September.

These figures come after the region’s services PMI revealed that the sector’s activity contracted for the fourth consecutive month in November, which poses a serious challenge for the ECB’s monetary tightening plans.

Later today, the Retail sales are expected to have improved moderately last month, which might offer some respite to a battered Euro, although the market’s main focus is the US ADP data, due at 12:15 GMT today.

The euro might find some buyers at 1.0750

The near-term bias remains bearish although the confluence of the 4h 200 SMA with a previous resistance area at 1.0750 might provide some support to the Euro. Below here, the next target would be 1.0660

Resistances are at 1.0850 and 1.1010.

Technical levels to watch
 

EUR/USD

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