The euro continue retreating against the US dollar during the American session. Initially erased daily losses and then dropped further. EUR/USD reached a fresh daily low at 1.0724 and it was trading at 1.0735, around the same level it closed on Friday.
Earlier today, the euro rose to test last week highs, but after reaching 1.0776 lost strength and changed its intra-day trend. The decline so far has been limited with the price limited within Friday’s trading range, on a low volatility session across financial markets.
Today’s price action represents a consolidation after last week rally. For the third day in a row, the euro traded all day above 1.0700. In the short-term it is moving in a range between 1.0780 and 1.0725, still holding an upside bias, but not looking as stronger as it did previous days.
On top of 1.0780, the pair could make an attempt to the 1.0800 zone and then, the next resistance would be 2017 highs, that lie at 1.0830. On the opposite direction, the immediate support is the area of the daily low at 1.0725, followed by 1.0705 (Mar 16 low) and 1.0660/65 (Mar 14 high).