EUR/USD dips to 1.2850

FXstreet.com (Edinburgh) - Renewed selling interest is now dragging the EUR/USD to test the 1.2855/50 region on Tuesday, as the greenback is now gathering traction.

EUR/USD extends the retracement from 1.2900

After reaching peaks in the boundaries of the critical resistance at 1.2900, the 2-day bull run in the pair seems to have stalled, retracing those initial gains to the current area around 1.2860. In the opinion of BBH Global Currency Strategy Team, “There does not seem to be much enthusiasm for the single currency, although Greece's next tranche of aid appears approved and the political maelstrom in Portugal has been resolved. Initial intraday support is seen in the $1.2840 area”.

EUR/USD levels to watch

As of writing the pair is down 0.13% at 1.2852 and a break below 1.2845 (low Jul.19) would open the door to 1.2806 (low Jul.5) and then 1.2796 (low May.17). On the upside, resistance levels align at 1.2916 (high Jul.5) ahead of 1.2950 (23.6% of 1.3417-1.2806) and finally 1.2963 (MA10d).

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