EUR/USD drops further to test 100-DMA

The selling pressure behind the EUR/USD pair intensified post-European session, sending the rate deeper into losses towards 100-DMA support located at 1.1168.

EUR/USD breaches 100-DMA

Currently, EUR/USD trades -0.28% lower at fresh session lows of 1.1170, moving further away from 1.12 handle. The main currency pair accelerates to the downside as the US dollar extends gains against its major competitors amid a better risk environment, after the European equities open the week on a firmer note. Meanwhile, the US dollar index advances +0.22% to fresh session highs of 96.73, looking to regain 97 handle.

The EUR/USD pair ignored auspicious trade data out of the German economy, as the major is likely to remain at the mercy of the USD dynamic, in absence of significant fundamental drivers. While holiday-thinned trades also fail to provide any support to the spot.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1204/06 (20 & 10-DMA). A break beyond the last, doors will open for a test of 1.1221 (50-DMA) and from there to 1.1250 (psychological level). On the flip side, the immediate support is placed at 1.1150 (psychological levels) below which 1.1100 (round figure) and 1.1104 (2-month low) could be tested.