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  • EUR/USD failed to capitalize on the overnight bounce to 1.1100 mark.
  • A modest pickup in the USD demand exerted some fresh pressure.
  • Selling pressure likely to aggravate below last Friday’s swing low.

The EUR/USD pair finally broke down of its daily consolidative trading range and dropped to session lows, around the 1.1075 region in the last hour.

The pair failed to capitalize on the previous session’s attempted recovery move and witnessed some fresh supply near the 1.1100 handle on Tuesday amid some renewed US dollar buying interest.

AS investors looked past Monday’s dismal US Durable Goods Orders data, the greenback managed to regain some positive traction and turned out to be one of the key factors exerting pressure on the major.

Apart from some USD strength, the slide lacked any obvious fundamental catalyst and thus, warrants some caution before placing any aggressive bets amid holiday-thinned liquiditiy conditions on Christmas Eve.

Meanwhile, the pair has now dropped back closer to last Friday’s swing low, which if broken might aggravate the bearish pressure amid relatively thin liquidity conditions ahead of the Christmas break.

Technical levels to watch