EUR/USD drops further to test 1.1400

• US Dollar extends gains versus euro despite US data.  
• Pair drops to lowest in over a week, tests 1.1400.  

The EUR/USD pair broke below 1.1410 and fell to 1.1399, reaching the lowest level since January 28. It remains near the lows, under pressure, testing the 1.1400 zone.  

The move lower took place amid a stronger US dollar that is gaining particularly against European currencies. A sharp slide in GBP/USD also pushed EUR/USD to the downside.  

The greenback gained strength despite weaker-than-expected US data and also lower US yields. The Markit PMI dropped to 54.2 in January and the ISM non-manufacturing index fell to the lowest since June to 56.7. While in the bond market, the 10-year fell to 2.69%, earlier today hit at 2.736%, the highest level in a week. Later today, US President Trump will deliver the State of the Union address.  

EUR/USD Short-term Levels to watch  

To the downside, the immediate support is the 1.1400 area, and then 1.1375 and 1.1350. On the upside, 1.1425 (20-hour moving average) is the first resistance, followed by 1.1440 (Feb 5 high) and 1.1460.