EUR/USD extends decline and breaks below 1.0650

EUR/USD dropped below 1.0650 and fell to 1.0627, hitting a new low since December. The pair remains near the lows under pressure as the US dollar rises across the board. 

The US dollar index is moving toward 101.00, trading at the strongest level in 13 years. Greenback has been rising across the board during the last three hours, supported by economic data and after Janet Yellen’s testimony. 

Equity markets remain calm with the Dow Jones flat at 18,870. In the bond market, US bond yields were rising with the 10-year at 2.276%. 

EUR/USD looking at 1.0600

The slide below the 1.0640 support area opened the doors to more declines. The next relevant support is seen at the 1.0600 handle followed by 1.0550 (Dec 2 2015 low) and 1.0520 (Dec 3 low). On the upside, now 1.0640 is the immediate resistance, followed by 1.0665 (Nov 16 high) and 1.0705 (Nov 14 & 15 low). 

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