The EUR/USD pair is in a bearish consolidation as we progress towards the European session, with the bears now awaiting fresh impetus for the next leg lower towards March lows reached at 1.0820
EUR/USD flirts with 7-month lows
Currently, EUR/USD drops -0.14% to 1.0866, looking to break below daily lows struck previously at 1.0860. The main currency pair keeps the offered tone intact as the US dollar seems to consolidate near new eight-month peaks, in response to hawkish Fedspeaks that boosted the odds for a Fed rate hike this year.
Moreover, the latest Commitments of Traders (CFTC) report released Friday revealed that the USD long positions hit highest levels since January, while EUR shorts increased by 16K, with 109K short versus 93K short last week.
Focus now remains on the Eurozone flash services and manufacturing PMI reports due later today ahead of a couple of Fedspeaks scheduled in the NA session. Later this week, ECB President Draghi’s speech and US advance GDP figures will be closely eyed for further direction on the major.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance 1.0908 (5-DMA). A break beyond the last, doors will open for a test of 1.0951 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0850 (psychological levels) below which 1.0820 (March lows) and 1.0800 (round figure) could be tested.
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