EUR/USD under pressure near 1.1130

The bearish note around the single currency stays unabated so far this week, with EUR/USD now navigating the area of recent lows around 1.1130.

EUR/USD weaker, USD resumes up move

The ongoing rout in crude oil prices keeps weighing on the sentiment surrounding the risk-associated universe, while at the same time encourages further inflows into the greenback and other safe haven assets.

Spot already shed nearly 2 cents since last week’s tops in levels just shy of the critical 1.1300 handle, opening the door for a deeper pullback which should see the 1.1100 support come under pressure. Reinforcing this view, EUR futures signal a likely extension of the correction lower, as liquidation of long positions stay well and sound.

On the USD-side, the US Dollar Index keeps the weekly recovery unchanged so far, backed by (in general) supportive Fedspeak while the effervescence in the US political arena appears somewhat mitigated.

Nothing scheduled data wise in Euroland, with investors closely following the developments from the Brexit negotiations. Across the Atlantic, May’s existing home sales are due seconded by the EIA’s weekly report on crude oil stockpiles.

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.1136 facing the next up barrier at 1.1165 (high Jun.20) seconded by 1.1204 (20-day sma) and finally 1.1217 (short-term resistance line). On the other hand, a breakdown of 1.1119 (low Jun.20) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).