EUR/USD Plunges For Fourth Straight Day

The EUR/USD pair extends its overnight side-trend, although remains better bid in the early European trades, with trading expected to remain light amid lack of relevant economic data.

The EUR/USD pair trades modestly flat at 1.1330, oscillating in a 20-pips range during most of Asia. The major keeps its range-trade intact and appears to consolidate before next leg lower as the USD bulls are expected to resume its upstreak, riding higher on the recent upbeat US fundamentals.

Moreover, mixed sentiment on the Asian indices also failed to provide any impetus to the shared currency. However, the falling US treasury yields somewhat keep the EUR/USD supported. The benchmark 10-year treasury yields drop -0.61% to 2.016% while the 2-year yields on the US notes decline -1.40% to 0.593%.

In the day ahead, markets shift their attention towards the US calendar and subsequent Fed speaks as the European session holds nothing relevant in terms of macro data on the cards.

The pair struggles below the daily pivot located near 1.1340 which acts as the immediate resistance, beyond which 1.1362/1.1368 (h1 200-SMA & 10-DMA) would be tested and from there to 1.1386 (h1 100-SMA). While the immediate support is located at 1.1300 (psychological levels), a breach of the last would expose 1276 (50-DMA), below which floors open for a test of 1.1260 (daily S2).

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