EUR/USD struggling near one week lows, around 1.1930 level
| • Resurgent USD demand exerts pressure for the third straight session.
• Selling pressure seems to have receded, at least for the time being.
The EUR/USD pair maintained its heavily offered tone through the early NA session, albeit the selling pressure now seems to have receded, at least for the time being.
The pair remained under some selling pressure for the third consecutive session and extended its sharp retracement slide from a possible double-top formation just ahead of the 1.2100 handle, coinciding with 2017 yearly tops touched in September.
A strong follow-through US Dollar buying interest, supported by growing bets for additional Fed rate hike moves in 2018, has been one of the key factors weighing heavily on the major.
Today's downfall could also be attributed to some technical selling following yesterday's bearish closing below the key 1.20 psychological mark, and a subsequent weakness below 1.1960-55 support area.
As Valeria Bednarik, American Chief Analyst at FXStreet writes, “the pair is developing well below a bearish 20 SMA, while technical indicators continue heading lower around oversold readings. The 100 SMA in the mentioned chart converges with the Fibonacci support, further indicating that the bearish momentum will likely accelerate on a break below 1.1920.”
With the only scheduled release of JOLTS job opening data, the US economic docket lacks any major market-moving economic releases and hence, the USD price dynamics would continue to act as an exclusive driver of the pair's movement on Tuesday.
Technical outlook
Bednarik further adds: “The downward correction in the EUR/USD pair is about to reach an inflection point, as its near the 50% retracement of the previous three week's rally around 1.1920. Failure near 1.2100 and a break below the mentioned Fibonacci support, should be quite discouraging for bulls, and additional profit taking should result in lower lows ahead.”
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