EUR/USD drops to multi-week lows near 1.1150, targets 2019 lows

The bearish pressure surrounding the EUR/USD pair intensified in the second half of the day, dragging it to the lowest level since May 31 at 1.1150. As of writing, the pair was trading at 1.1155, losing 0.47% on a daily basis.

The broad USD strength seems to be driving the pair's price action on Tuesday. After posting decisive gains in the last two trading days, the US Dollar Index extended its rally to reach a fresh five-week high of 97.71. Although today's macroeconomic data releases from the U.S. painted a mixed-picture, rising Treasury bond yields seem to be providing a boost to the greenback. 

The Philly Fed's Non-Manufacturing Index improved to 21.4 in July from 8.2 in June to reveal a robust expansion in the region's service sector's business activity. On the other hand, the Richmond Fed's Manufacturing Index plummeted to -12 in July from 3 in June and fell short of the market expectation of 5. 

Euro remains under pressure ahead of ECB

In the meantime, investors seem to be staying away from the shared currency ahead of the European Central Bank's (ECB) critical monetary policy meeting later this week. Previewing this event, "The ECB is likely to change the forward guidance and signal the upcoming cuts (in September and potentially beyond), thus cementing the markets' dovish expectations," ING analysts said.

The advanced estimate published by the European Commission today showed that the consumer confidence n the euro area was expected to improve in July but did little to nothing help the euro recover its losses.

Technical levels to watch for