EUR/USD drops to test 1.3600

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Edinburgh) - The single currency is intensifying its intraday decline on Thursday, pushing the EUR/USD to challenge the critical support at 1.3600.



EUR/USD weaker ahead of US data



The pair continues to weaken ahead of the US weekly report on the labour market (Initial Claims at 310K exp.) and the inflation figures gauged by the PCE, against a backdrop of generalized improvement in the USD. “With US Treasury yields between 6 and 10bps lower than prior to the Fed's announcement, it would take a massive upside surprise in the PCE data set to defy the markets' current views stance on interest rates and, consequently, push the USD higher on the day”, observed Shaun Osborne, Chief FX Strategist at TD Securities.



EUR/USD levels to consider



As of writing the pair is losing 0.13% at 1.3610 and a breach of 1.3583 (low Jun.24) would target 1.3574 (low Jun.23) en route to 1.3565 (low Jun.20). On the flip side, the initial hurdle lines up at 1.3651 (high Jun.25) followed by 1.3669 (high Jun.9) and finally 1.3672 (200-d MA).



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