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EUR/USD drops further to hourly 50-SMA, 1.10 in sight?

FXStreet (Mumbai) - Having failed once again near Monday’s high, the EUR/USD pair extends to the downside and drops to fresh daily lows near the hourly 50-SMA.

EUR/USD prints fresh lows

The EUR/USD pair trades -0.16% lower at fresh day’s lows of 1.1038, unable to extend beyond Monday’s high located near 1.1070 region. The main currency pair keeps pushing lower as we progress towards the mid-European session, as the losses in the European stocks are doing little to help the EUR. The DAX loses -0.10% while the UK’s FTSE trades -0.42% lower ahead of the UK GDP report.

Moreover, the major came under renewed selling pressure after the Euro zone M3 money supply, i.e., the amount of domestic currency in circulation and deposited in banks in the euro zone, came in below market forecasts. Euro Zone M3 Money Supply rose to 4.9%, from 4.8% in the preceding month, missing expectations of a 5.0% rise.

In the day ahead, the pair will remain influenced by the broader market sentiment while the crucial US durable goods and consumer confidence data will remain in focus for further momentum. Besides, the Fed 2-day meeting starts later today.

EUR/USD Technical Levels

The pair failed near 1.1050 levels in last hours and drops further with the immediate support in sight located at 1.1006/00 (daily S1 + psychological levels), below which 1.0956/59 (daily S2 + Aug 11 Low) could be tested, a breach of the last would expose 1.0850 (August lows) levels. A failure to breach 1.1000 levels, the prices could rebound higher towards 1.1070 (Monday’s High + Today’s High), beyond which the immediate resistance at 1.1080 (200-DMA) would be tested. A break above the last, 1.1100 (round number) would come into the picture.

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