EUR/USD drops to fresh lows near 1.1780

Pablo Piovano FXStreet

The now better tone in the greenback is forcing EUR/USD to recede further to the area of fresh daily lows in the 1.1785/80 band.

EUR/USD weaker on USD pick up

Spot remains offered in early European trading following a moderate rebound in the demand for the US Dollar, and it is extending the drop for the third consecutive session.

In addition, elections in Lower Saxony saw a defeat of Merkel’s party and could be also weighing on EUR sentiment, while the situation in Catalonia should keep investors wary as well.

Further news for EUR comes from the positioning front, where speculative net longs increased to the highest level since December 27 2011 during the week ended on October 10, as per the latest CFTC report.

In the data space, EMU’s trade balance figures for the month of August are due later, while the NY Empire State index will be the salient point later in the NA session

EUR/USD levels to watch

At the moment, the pair is losing 0.32% at 1.1784 and faces the initial support at 1.1686 (low Oct.6) followed by 1.1662 (low Aug.17) and finally 1.1632 (100-day sma). On the upside, a breakout of 1.1843 (55-day sma) would target 1.1911 (high Aug.2) en route to 1.2033 (high Sep.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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