FXStreet (Mumbai) – The offered tone around the EUR/USD pair keeps growing bigger heading into mid-European trades, knocking-off the price to fresh two-day lows ahead of 1.06 barrier.
EUR/USD heads towards multi-month lows
Currently, the EUR/USD pair trades 0.24% lower at 1.0616, hovering close to fresh session lows struck at 1.0607 in last minutes. The selling pressure around EUR/USD intensified on the break of the hourly 50-SMA support at 1.0642 and the major dropped sharply towards 1.06 levels, with multi-month lows in sight.
The sharp sell-off seen in the EUR/USD pair, can be mainly attributed to the re-emergence of appetite for riskier, driving European stocks through the roof and boosting the risk-currency – the US dollar.
The solid comeback staged by the greenback across the fx board, also halted the EUR/USD recovery and triggered renewed weakness. While the shared currency remains under pressure on growing monetary policy divergence between the Fed and ECB in the run up to the ECB Dec 3 showdown.
Looking ahead, focus remains on the US macro releases, including the durable goods and Core PCE index, amid a data-empty EUR calendar.
EUR/USD Technical Levels
The pair struggles above 1.06 handle, with the immediate support seen at 1.0600/1.0593 (round number/ Nov 23 Low). Selling pressure will intensify below the last, dragging the pair towards 1.00519 (April Lows). While to the upside the next hurdle in sight is located at 1.0642 (1h 50-SMA) and from there to 1.0689 (daily high).
(Market News Provided by FXstreet)