EUR/USD drops to fresh session lows, closer to 1.0700

A combination of a stronger US dollar in the market and a weak Euro keep EUR/USD below 1.0740. Recently the pair printed a fresh daily low at 1.0713 and it was trading barely above that level, facing bearish pressure. 

From daily highs, the pair lost a hundred pips, and is extending to seven, the daily declines in a row. Today’s slide so far has been capped by the 1.0700 - 1.0710 area, that has become a key short-term support, that also offered support yesterday. A break lower could open the doors to further slides. 

USD boosted by data and politics 

Earlier today, the US retail sales report, that showed a gain of 0.80% in October, above the 0.6% expected, accelerated the retreat from the highs. Also, Fed’s officials pointing toward a rate hike discussion at the next FOMC meeting favored the decline in EUR/USD. 

Another factor the contribute to gave support the Greenback was the announcement that Paul Ryan, unanimously won the nomination of his Republican colleagues to continue as the speaker of the House of Representatives. 

EUR/USD levels 

Immediate supports are seen at 1.0708/1.0700 (Nov 14 low/psychological level), 1.0640 (Nov 27 2015 high) and 1.0550 (Dec 2 2015 low). On the flip side, resistances could be found at 1.0750 (20-hour moving average), 1.0815 (daily high) and 1.0850 (Oct 25 low).

To learn more about this topic, check our video analysis.