EUR/USD probing fresh lows near 1.0560, Fedspeak eyed

The bid tone around the buck is now forcing EUR/USD to test the area of daily lows in the vicinity of 1.0560.

EUR/USD weaker ahead of Fedspeak

The pair met further downside pressure on Tuesday in response to the increasing buying interest surrounding the greenback.

In fact, USD gathered further traction after Philly Fed P.Harker has not ruled out a rate hike by the Federal Reserve as soon as next month. His comments fell in line with the recent testimonies by Chief J.Yellen and other FOMC governors (with the exception of Bullard).

In the data space, auspicious flash PMI readings in Germany for the month of February failed to spark any reaction in the single currency, while upcoming Fedspeak remains poised to grab all the attention. That said, Philly Fed P.Harker (voter, hawkish), Minneapolis Fed N.Kashkari (voter, neutral) and San Francisco Fed J.Williams (2018 voter, neutral) are all due to speak later in the session.

It is worth mentioning that EUR has come under renewed pressure from the speculative community, as net shorts climbed to fresh 3-week highs in the week to February 24, as seen in the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is losing 0.50% at 1.0559 and a breach of 1.0520 (low Feb.15) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3). On the upside, the next resistance lines up at 1.0680 (20-day sma) followed by 1.0682 (high Feb.16) and finally 1.0706 (38.2% Fibo of the November-January drop).