EUR/USD tumbles to lows, below mid-1.1700s

The EUR/USD pair ran through some fresh offers near the 1.1780 region and has now dropped to the lower end of daily trading range. 

The pair extended Friday's rejection slide from 50-day SMA hurdle and traded with bearish bias for the second consecutive session, amid persistent Spanish political uncertainly. The latest leg of slide since early European session could be attributed to Catalonia's foreign minister was noted saying that they will not follow the orders of Madrid but the will of the people.

The comments followed Spanish Deputy Prime Minister's statement that central government may choose a single representative to govern Catalonia temporarily and Catalan leader will lose all powers once senate approves direct intervention. 

Meanwhile, a generalized US Dollar demand, supported by growing expectation that US President Donald Trump's tax reform will be passed sooner-rather-than later, further collaborated to the pair's fall below mid-1.1700s. 

On the economic data front, the release of EU consumer confidence index for the month of Oct. would now be looked upon for some immediate respite for the common currency. However, the key focus would be on Tuesday flash Euro-zone PMIs ahead of the highly anticipated ECB monetary policy decision on Thursday.

Technical levels to watch

A follow through weakness below 1.1730 level is likely to accelerate the slide towards the 1.1700 handle before the pair eventually drops to an important horizontal support near the 1.1670-65 region.

On the upside, 1.1775-80 area now seems to have emerged as immediate resistance and is closely followed by the 1.1800 handle. Any up-move beyond the mentioned hurdle might continue to confront fresh supply near 50-day SMA barrier near mid-1.1800s.