Forex: EUR/USD pressed against fresh 1-month lows

EUR/USD is currently pressing at 1.3275 to fresh 1-month low just 6 pips below, printed following latest FOMC meeting minutes, indicating stimulus may end, making USD index jump the most in 3 months. The pair is down -0.63% for the week so far, retracing from fresh weekly highs around the 1.3430 level, ask line tested at least for three times since early Asian trade yesterday to mid London session. Euro started easing the bids after less demand than expected in German bunds auction, that resulted in higher interests at 1.66% vs 1.56%.


As Valeria Bednarik notes, Chief Analyst at Fxstreet.com, the EUR/USD broke below “the daily ascendant trend line coming from 1.2660, with indicators strongly bearish deep in oversold levels,” the analyst says, adding: “There are no signs the pair may attempt a corrective movement higher, although a pullback towards the broken trend line around 1.3310/20 may take place before sellers reappear. There’s a strong static support level around 1.3260, as per early January daily lows. Once below, expect the rally to extend further, with a 100 pips clear path ahead towards 1.3150 price zone,” she suggests.

Valeria spots support levels at: 1.3250, 1.3220 and 1.3180, while resistance levels at: 1.3320, 1.3350 and 1.3385.