EUR/USD at fresh 2-month lows

Matías Salord FXStreet

EUR/USD dropped further and fell below previous weekly lows reaching at 1.1124 the lowest level since March 16. The pair remains under pressure, trading slightly above 1.1125, as the US dollar advances further in the currency market.

EUR/USD with eyes on 1.1100 and 1.1050

After approaching 1.1200 during the Asian session, EUR/USD turned to the downside and moved since then with a bearish bias. It has been reaching fresh lows during the last eight hours and now is attempting to consolidate below Tuesday and Wednesday’s lows. If it holds under, a test of 1.1100 would be on the cards. The next relevant support is seen around the 1.1050/60 area.

From an intraday perspective, as long as it remains under the 1.1170 zone (20-hour moving average), momentum is likely to continue to favor the US dollar. Only a break above could change the intraday tone for a bullish perspective. For the moment, with EUR/USD trading heavy at 1.1130 a recovery above 1.1170 seems unlikely.

In about two hours, Janet Yellen will speak at Harvard and its words could impact on the US dollar. Signals of a June rate hike would likely pushed EUR/USD below 1.1100 while a dovish tone could give some momentum to the euro.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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