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EUR/USD: Bears in control, challenges 1.1100

FXStreet (Mumbai) - A sudden bout of selling interest was seen in the EUR/USD pair in the early Asian session, sending the pair to fresh three-week lows just ahead of 1.11 barrier.

EUR/USD keeps falling on stronger USD

The EUR/USD pair trades -0.15% lower at 1.1111, testing fresh multi-week lows reached at 1.1105 in last hours. The main currency pair extends its downward spiral into a fifth straight session as the euro fails to benefit from the persisting risk-off sentiment amid prominent divergent monetary policy outlooks between the US and Europe.

The recent comments from Fed officials Bullard and Lockhart, citing rate hike still alive this year, boosted the greenback across the board. While, the euro remains pressured amid hints on further easing by ECB policy makers, especially by the ECB Chief Draghi at the Sept ECB monetary policy meeting.

Meanwhile, focus now shifts towards the key China data before PMIs from the euro zone, which are expected to slightly decrease from the previous levels. The ECB's Mario Draghi will testify before the European Parliament's Economic and Monetary Committee in Brussels.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1134 (Today’s High), above which gains could be extended to 1.1209 (Sept 22 High) levels. On the flip side, support is seen at 1.1088 (Sept 4 Low) below which it could extend losses to 1.1057 (Aug 17 Low) levels.

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