EUR/USD continues to slide, hits fresh session low below mid-1.1700s

The EUR/USD pair maintained it’s offered tone through early European session on Monday and has now dropped to fresh session low, marginally below mid-1.1700s. 

The shared currency remained on the back-foot as investors evaluate the implications of the disputed referendum on Catalonia independence in Spain. Adding to this, persistent US Dollar buying interest, backed by surging US Treasury bond yields, further collaborated to the pair's slide at the start of a new trading week. 

Against the backdrop of growing market conviction, renewed optimism over the US President Donald Trump's tax reform proposal remained supportive of the prevalent strong bullish sentiment surrounding the greenback. 

Meanwhile, today's release of final Euro-zone manufacturing PMI prints went unnoticed, with the latest political uncertainty in the region dragging the pair back closer to last week's 1-1/2 month lows.

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Later during the NA session, the release of US ISM manufacturing PMI would now be looked upon for some fresh impetus ahead of other important macro data, including the keenly watched NFP, scheduled at the beginning of a new month. 

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Technical levels to watch

Immediate support is pegged near 1.1720 area, below which the pair is likely to break below the 1.1700 handle and head towards testing 1.1680-75 support area. 

On the upside, any recovery attempts above 1.1770-75 area now seems to confront resistance near the 1.1800-1.1810 region, which is followed by a strong supply zone at 50-day SMA, near the 1.1845-50 region.