FXStreet (Edinburgh) - The selling mood is now intensifying around the euro, driving the EUR/USD to levels below the 1.3600 handle.
EUR/USD weakness continues
Spot is now breaking below the consolidation pattern that prevailed overnight, challenging 2-week lows near the 1.3580 region. After hitting multi-day peaks just above 1.3700 the figure this week, a dovish Draghi but mainly the very positive reading from June’s Payrolls in the US economy (288K) woke up yields and prompted the demand for the greenback. In light of yesterday’s ECB meeting, Analyst Clemente De Lucia at BNP Paribas commented, “The ECB monetary policy stance remained unchanged and it is unlikely to change for a while unless a drastic deterioration of the economic outlook occurs. Several quarters are needed for assessing clearly the effects of the June’s package on the economy”.
EUR/USD key levels
As of writing the pair is losing 0.14% at 1.3590 with the next support at 1.3576 (low Jun.26) followed by 1.3574 (low Jun.23) and then 1.3565 (low Jun.20). On the flip side, a breakout of 1.3611 (high Jul.4) would target 1.3664 (high Jul.3) en route to 1.3676 (200-d MA).