EUR/USD supported at 1.0850

FXStreet (Mumbai) - The European currency extends its downside momentum into a third-day against the US dollar on Wednesday, with EUR/USD keeping range near a new two-week low reached in early Asia. The shared currency remains pressured amid persistent US dollar strength across the board as markets continue to favour the US currency amid increased Sept rate-hike bets further bolstered by Tuesday’s Fed Lockhart’s hawkish comments.

EUR/USD languishes near fresh 2-week lows

The EUR/USD pair trades -0.18% lower at 1.0861, attempting to breach 1.0850 support yet another time.
The EUR/USD pair keeps losses and trades sub 1.09 handle as the recent Fed Lockhart’s comments continue to lift the sentiment around the greenback, bringing back divergent monetary policy outlooks between the US and the Europe in focus.

The major also remains pressured as the latest upbeat US factory orders data added to further to the broad based US dollar strength while ongoing Greek talks between Athens and its creditors also keeps the single currency undermined.

Meanwhile, markets now turn their attention towards US macro updates due later in the New York session while EZ final services PMI data will also keep EUR traders busy.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.0885 (Today’s High) levels, above which gains could be extended to 1.0908 (July 17 High) levels. On the flip side, support is seen at 1.0810 (July 21 Low) below which it could extend losses to 1.0712 (March levels).

USD bulls dominate Asia, UK services PMI, a host of US data -Key

Broad based US dollar strength remained the underlying theme in Asia with the greenback flexing its muscles boosted by the hawkish comments from Atlanta Fed President Lockhart delivered on Tuesday. While the Aussie remained the weakest, correcting heavy gains witnessed post RBA and the Kiwi also followed suit, dented by poor jobs data.
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GBP/USD drops below 50-DMA ahead of UK data

The offered tone on the GBP/USD remained intact in the Asian session on Tuesday, pushing it below the 50-DMA located at 1.5558.
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