EUR/USD failed to sustain yesterday’s gains as positive US data was released and especially after Fed Chair Yellen noted in her testimony that an increase in interest rates “could well become appropriate relatively soon.
The pair rallied yesterday to 1.0745 high then failed to keep gains as it sank to 1.0619 low, then closed at 1.0625. EUR/USD extended bearish momentum in opening trading sessions dropping to 1.0581 low, ( lowest June 2015). US dollar still dominating the market as US dollar index peeked to 101.39 today, currently 101.33 intraday.
The pair is expected to drop further more as US economy still growing strongly since Trump victory. Today, Draghi makes an appearance at 8:30 AM GMT on behalf of ECB with efforts to stop EUR/USD from bleeding further more.
Key levels to watch: Daily Pp 1.0663
Resistance: R1 1.0663, R2 1.0709, R3 1.0759
Support: S1 1.0554, S2 1.0505, S3 1.0454
Remark: US dollar still keeping a tight fist around EUR. EUR/USD trend is still bearish with expectation of short-term-upswing due to Draghi speech today at 8:30 AM GMT.
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