EUR/USD drops further, 1.1300 closer

The selling mood around the single currency is now gathering further steam, sending EUR/USD to test fresh lows in the 1.1310 level.

EUR/USD in 4-day lows

The greenback’s upside continues to derive support from the spread differential between Bunds and US Treasuries, in turn pushing the US Dollar Index to regain the 94.00 handle and beyond.

In the US data space, Initial Claims have come in at 264K during last week, bettering expectations while somewhat adding extra support to the dollar.

EUR/USD levels to watch

The pair is now retreating 0.76% at 1.1308 and a break below 1.1300 (psychological handle) would target 1.1248 (20-day sma) en route to 1.1211 (100-day sma). On the other hand, the next up barrier lines up at 1.1416 (high Jun.8) ahead of 1.1448 (high May 11) and finally 1.1466 (high Apr.12).