EUR/USD on the edge amid firmer dollar to start the session

Technical Analysis

EUR/USD nears the August lows at 1.1664-66

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The retreat since the start of the month is continuing for EUR/USD, with the dollar underpinned by the surge higher in Treasury yields since the technical break last week.

The latest shove lower brings the pair down to 1.1673 and that puts the spotlight on the August and year’s lows at 1.1664-66 next.

Keep an eye out for this critical level over the next few sessions as a break there risks a quick fall towards the next key support region near 1.1600.

After that, there is further support from its key weekly moving averages @ 1.1573-99.

But from the dollar’s perspective, a break below the August and year’s lows pointed out above is likely to lead to broader bids across the board – especially if accompanied by a push in USD/JPY above the year’s highs @ 111.64-66 and preferably 112.00.

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