EUR/USD drops 1 big figure, weakest since January

The bears take a breather in the European session, prompting a minor-recovery in the EUR/USD pair from eleven-month struck ahead of 1.07 handle.

EUR/USD submerged in the red                                                                       

Currently, EUR/USD now drops -0.96% to 1.0750, quickly bouncing-off a dip to fresh multi-month troughs reached at 1.0728 in the last hour. The main currency pair trims losses, although remains relentlessly offered into persisting broad based US dollar strength, in wake of a Trump win at the US elections last week.

The latest leg higher in the EUR/USD is mainly attributed to a minor-retreat in the US dollar versus its six main rivals, after the USD bulls ran into 100 mark resistance. However, the euro remains exposed to further downside risks against the buck amid risk-on market profile, triggered by Trump-led rally in the treasury yields and increased hopes for a Dec rate hike.

Focus now remains on the ECB Chief Draghi’s speech scheduled later today, ahead of Tuesday’s Eurozone flash GDP and US retail sales data.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0826 (daily high). A break beyond the last, doors will open for a test of 1.0856 (5-DMA) and from there to 1.0900 (round figure). On the flip side, the immediate support is placed at 1.0728 (11-month lows) below which 1.0709 (Jan low) and 1.0650 (key support) could be tested.

To learn more about this topic, check our video analysis