FXStreet (Mumbai) – The EUR/USD pair fell to a fresh session low of 1.1233 after it ran into fresh offers at 1.1270 levels as the markets continue to ignore the favorable benchmark bond yield spread.
Nears a key Fib support
The pair neared 1.1228, which is the 23.6% Fib R of the corrective move witnessed from 1.0461 to 1.1465. The sell-off begun at a high of 1.1337 seen in the early European session, which gathered pace after the pair dipped below 1.1293 (23.6% R of 1.3991-1.0461).
The common currency was also pushed down by news that an EU official said the new Greek reform proposal submitted earlier today was inadequate and vague. There were also reports that German Fin Min Schaeuble and Varoufakis still have diverging views.
EUR/USD Technical Levels
The immediate resistance is located at 1.1293, above which gains could be extended to 1.1378 (June 4 high). On the flip side, a break below 1.1228 could see the pair test 1.1190 levels.
(Market News Provided by FXstreet)