EURUSD BEARISH UNDER 1.1166

The EURUSD pair has fallen below the key 1.1166 support level, as interest rate differentials between the U.S dollar and the euro now pair start to weigh on the pair.

The potential for further U.S rate hikes now seems likely, after Janet Yellen's Hawkish tone yesterday, with the EURUSD and bond markets now starting to react, sending the U.S dollar higher across the board.

Technically the pair is bearish on all lower time frames, with the 1.1148 support area now coming into focus, a loss of this area should provoke further EURUSD losses towards 1.1110 and 1.1000 in the coming sessions.

In the medium term, today's U.S economic data and the EURUSD reaction below 1.1166 should become the deciding factors for direction.

Resistance for the pair is layered above 1.1166, between 1.1190 and 1.1204, with a break above 1.1215 needed to negate bearish intraday selling.