EUR/USD losing the grip, tests lows near 1.0600

EUR/USD is now facing increasing selling pressure, dropping to daily lows in the vicinity of the key support at 1.0600 the figure.

EUR/USD attention to Yellen, US data

The now better sentiment around the US Dollar has prompted spot to resume its recent down trend, albeit at a faster pace during the European afternoon.

The greenback is extending its firm note today, currently encouraging the US Dollar Index to assault the boundaries of last week’s critical tops at the 101.00 handle following a positive start of the US markets.

Yields in US money markets are flirting with daily highs, sustaining further the buck’s bull run. On the opposite side, German yields remain in quite a consolidative theme, prompting spreads to widen in Dollar’s favour.

Other than the continuation of the buying interest around USD, recent EUR weakness could also obey to the effervescence around Greece following recent failed attempts to clinch a deal between the Greek government and international creditors over bailout negotiations.

On another direction, the speculative community continued to trim EUR net shorts during the week ended on February 7 as showed by the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is losing 0.30% at 1.0608 facing the next support at 1.0600 (psychological support) followed by 1.0587 (low Jan.19) and finally 1.0452 (low Jan.11). On the upside, a breakout of 1.0670 (high Feb.10) would target 1.0710 (20-day sma) en route to 1.0758 (100-day sma/short-term resistance line).