EUR/USD hits 11-month lows, approaches to 1.0700

EUR/USD came under renewed pressure during the American session and is moving closer to the 1.0700 area, as the dollar continues to strengthen on prospects of  fiscal stimulus and faster pace of Fed hikes following Trump’s victory in US presidential elections.

US equities are extending gains on Monday, with Dow and Russell hitting fresh record highs as investors expect that President elect Trump’s proposals will lead to faster economic growth.

EUR/USD extended losses and following a short-lived bounce attempt, the pair hit a low of 1.0708, last seen in December. At time of writing, the pair is trading at 1.0720, down 1.28% on the day.

EUR/USD levels to consider

As for technical levels, next supports are seen at 1.0700 (psychological level), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level). On the flip side, immediate resistances could be found at 1.0850 (Oct 25 low), 1.0955 (20-day SMA) and 1.1000 (psychological level).

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