EUR/USD extends slide, hits 6-day lows

  • Broad USD-strength weighs on EUR/USD that falls below 1.1700.
  • Euro having the worst day against US dollar since June 27.

The EUR/USD pair dropped further and broke below 1.1700. It bottomed at 1.1670, the lowest level since last Thursday. From day’s top lost 90 pips and the negative tone remains intact. As of writing, the pair trades at 1.1680/85, down for the second-day in-a-row and having the worst performance since the beginning of the month.

The greenback reached fresh highs across the board during the US session. DXY Futures broke above 94.15/20 and hit 94.41, the highest level in a week, extending the recovery from 93.39 (Jul 9 low).

US Dollar gains appear to be supported by data released today (higher-than-expected US PPI ahead of tomorrow’s CPI), EM concerns and comments from Fed’s Evans supporting more rate hikes.

EUR/USD Levels to watch

The negative tone around the pair intensified during the US session with the consolidation under 1.1700. It found support around the 1.1670 area. A break lower could lead to further losses. The next strong short-term support could be seen at 1.1630 (Jun 23 & Jul 3 low) and below attention would turn to 1.1600.

The euro needs to regain 1.1700 in order to ease the bearish pressure. Above resistance levels might be seen at 1.1725 and 1.1755/60.

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