EUR/USD bounces off lows, looks to regain 1.1400

• The pair sinks to fresh 13-month lows in the 1.1365/60 band.
• Rising fears over the Lira crisis weigh on sentiment.
• The greenback stays supported on safe-haven demand.

After dropping to fresh 13-month lows near 1.360, EUR/USD seems to have found some buyers and is now trading closer to the 1.1400 handle ahead of the opening bell in Euroland.

EUR/USD looks to Turkey

Spot dropped to the proximity of 1.1360 during early trade as the risk-associated complex remains under heavy pressure in response to the crisis around the Turkish Lira.

In fact, TRY plummeted to another all-time lows vs. the greenback in early trade, motivating investors to keep their exodus from riskier assets – particularly the EM complex – and intensify at the same time the demand for safe haven currencies, like JPY, CHF and USD.

No relevant releases or events in both the euro area and the US docket should leave all the attention to TRY while the rest of its EM remains under scrutiny on contagion fears.

EUR/USD levels to watch

At the moment, the pair is down 0.23% at 1.1385 facing the next support at 1.1365 (2018 low Aug.13) seconded by 1.1312 (low Jul.5 2017) and then 1.1300 (psychological level). On the upside, a breakout of 1.1559 (10-day SMA) would aim for 1.1623 (21-day SMA) and finally 1.1745 (high Jul.30).