EUR/USD testing lows in the 1.1330 area

The single currency has reverted the initial positive start and is now dragging EUR/USD to test daily lows in the 1.1335/30 band.

EUR/USD weaker ahead of Yellen

Spot continues to retrace Friday’s spike to the 1.1380 area, triggered after the greenback sold off in response to the dismal print from US Non-farm Payrolls during May (38K).

The selling pressure around EUR has gathered extra steam following somewhat dovish comments from members of the ECB’s Governing Council – Smets, Nowotny and Liikanen – all emphasizing the role of the current QE programme and leaving the door open for further easing if needed.

Data wise, EMU’s Sentix index has come in above expectations for the current month, while the Fed’s Labor Market Conditions Index is next on tap ahead of the more relevant speech by Chair J.Yellen.

EUR/USD levels to watch

The pair is now retreating 0.27% at 1.1336 with the next support at 1.1306 (55-day sma) followed by 1.1244 (20-day sma) and then 1.1195 (100-day sma). On the flip side, a break above 1.1377 (post-NFP high Jun.3) would expose 1.1448 (high May 11) and finally 1.1466 (high Apr.12).