EUR/USD making fresh lows below 1.04 handle, 1.0234 next target post ISM

Currently, EUR/USD is trading at 1.0364, down -0.93% on the day, having posted a daily high at 1.0491 and low at 1.0340.

EUR/USD has been smashed to the downside at the start of 2017 with traders piling into the US dollar with a focus on the US economy improving while the Fed are on a tightening path vs a backdrop of political tension mounting over Europe alongside a potential banking crisis.

Meanwhile, the first key data from the US came in the past hour in the form of the ISM manufacturing index and James Knightley Senior Economist at ING explained that it has  added to optimism on growth."Strong activity and rising pipeline inflation pressures in the manufacturing sector back the Fed's decision to tighten monetary policy. We look for two more rate hikes in 2017."

ISM adds case for strong dollar Q1 2017 - ING

EUR/USD levels

Spot is presently trading at 1.0364, and next resistance can be seen at 1.0379 (Weekly Classic S1), 1.0390 (Monthly Low), 1.0390 (Annual Low), 1.0390 (3 Year Low) and 1.0390 (5 Year Low). Support below can be found at 1.0361 (Daily Classic S3), 1.0340 (Daily Low), 1.0234 (Weekly Classic S2), 1.0095 (Weekly Classic S3).

2017 underway - here are some food for thoughts!