EUR/USD stays in lows near 1.1380

The demand for the single currency stays somewhat subdued at the beginning of the week, with EUR/USD slipping back towards the 1.1385/80 band during the European afternoon.

EUR/USD weaker on USD-buying

The pair is losing ground for the second session in a row on Monday, testing the 10-day sma around 1.1380/85 amidst a pick up in the buying interest surrounding the greenback.

Spot is also deriving extra weakness from the poor daily performance from yields in the US money markets, where the rally in the 10-year benchmark seems to have found strong resistance around Friday’s top near 2.40%. Still around the money markets, German yields are also on the defensive, dragging the 10-year Bund to the 0.53% from YTD tops near 0.58% seen on Friday.

In the meantime and from the positioning front, EUR speculative net longs stayed on the rise during the week ended on July 3, advancing to 3-week tops as per the latest CFTC report.

In the very near term, some consolidation is likely according to the performance from EUR futures markets. The lack of relevant events during the first half of the week in both the US and Euroland appears to reinforce this view.

EUR/USD levels to watch

At the moment, the pair is losing 0.09% at 1.1389 facing the immediate support at 1.1382 (low Jul.10) followed by 1.1311 (low Jul.5) and finally 1.1278 (21-day sma). On the other hand, a breakout of 1.1448 (2017 high Jun.30) would target 1.1466 (high Apr.12 2016) en route to 1.1616 (2016 high May 3).