Monday, July 20, 2015

$EUR/USD drops below the May low

The EUR/USD pair was offered at 1.0834 on Tuesday, pushing it below the low of 1.0817 witnessed in May 2015.

USD strengthens on Fed official’s hawkish comments

The demand for the US dollar remains strong after a top Federal Reserve official on Monday added to expectations that US interest rates could be raised as early as September. The US treasury yields at the short-end of the curve rose in response to Bullard's comments.

With no major Eurozone data due for release in the European session, the divergent monetary policy adopted by the ECB and the Fed could continue to guide the $EUR/USD pair. Meanwhile, sharp moves in the $EUR/GBP cross after the release of BOE minutes could also influence the pair.

$EUR/USD Technical Levels

The immediate support is seen at 1.0785, under which the pair could drop to another support at 1.0710-1.07. On the other had, resistance is seen at 1.0870 and 1.0910.