EUR/USD turns negative, eyes monthly pivot support

EUR/USD is extending yesterday’s sell-off in Asia, now eyeing the monthly pivot support located at 1.1024 levels.

Cross driven weakness

Drop in EUR/GBP pair could be the reason behind the weakness seen in the EUR/USD pair, given that US dollar is trading on the back foot agains riskier currencies – AUD, NZD.

Meanwhile, bearish hangover is anyways strong following yesterday’s bearish break below 1.11 handle. The area around 1.11 acted as a strong support on multiple occasions since late August.

EUR/USD pair saw a brief recovery to a high of 1.1068 before falling to a session low of 1.1042 levels.

EUR/USD Technical Levels

On the daily chart, we see the trend line drawn from May high and June high comes around 1.1042. A break below the same could yield a test of 1.10 handle. A violation there could trigger stops and lead to quick fire drop to 1.0911 (June 24 low). On the higher side, break above 1.1068 (daily high) would expose 5-DMA level of 1.1115 and 1.1169 (200-DMA).