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EUR/USD drops to test key support at 1.1355

  • Euro tumbles against US dollar an also Swiss franc. 
  • EUR/USD reverses from weekly highs, rejected from above 1.1400.

The EUR/USD pair weakened during the American session and reversed, after hitting the highest level in almost three weeks, on the back of risk aversion and a stronger US dollar across the board. The pair dropped to 1.1355, the lowest since Thursday and at the moment trades at 1.1375, down for the day and 65 pips below the daily high it reached on Asian hours at 1.1442. 

The slide in GBP/USD dragged the EUR/USD down and also EUR/CHF. Also, the decline in European equity prices weighed by Brexit, UK political concerns and global economic risks. Against the Swiss franc dropped to the lowest in two months. 

In the Eurozone, the key event of the week is likely to be the European Central Bank of Thursday while the Federal Reserve meeting is next week. Regarding data, inflation data is due in the US: PPI on Tuesday and CPI on Wednesday. 

EUR/USD Levels to watch 

To the downside, the pair is trading close to the 1.1355 area that is a strong support.  A break lower could open the doors to more losses, supports below are seen at 1.1335 and 1.1300/05 (last week low). On the upside, resistance levels might lie at 1.1380, 1.1410 (20-hour moving average) and 1.1425/30. 

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