EUR/USD drops into losses, nears 1.08

FXStreet (Mumbai) - The bid tone on the USD strengthened again in early Europe, pushing the EUR/USD pair to a low of 1.0810 levels.

Rejected at Key Fibo level

The spot ran into fresh offers after it failed to sustain above 1.0852 (38.2% of 1.0517-1.1060) levels. The sharp drop in the USD/JPY did trigger a minor wave of selling in the USD, which pushed the EUR/USD pair rose to a high of 1.0868 levels. The selling in the EUR/JPY cross is also pulling the EUR/USD pair lower.

Moreover, the EUR is losing ground despite the losses in the European stocks. Ahead in the day, the pair remains at the mercy of the overall demand for the USD. The US services PMI and regional manufacturing index, coupled with Fed’s Lacker comments could also influence the pair.

EUR/USD Technical Levels

At 1.0813, the immediate support is seen at 1.08-1.0788 (50% of 1.0517-1.1060), under which the pair could drop to 1.0748 (23.6% of 1.1495-1.0517). On the other side, resistance is seen at 1.0890 (38.2% of 1.1495-1.0517), above which the pair could test 1.0940 (61.8% of Apr-Jun rally).