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  • The pair comes under further pressure on Monday.
  • The rally in the buck stays well and sound, approaches 94.00.
  • Fedspeak only of relevance later in the session.

Another day, another drop in the pair. The selling bias around the European currency is now dragging EUR/USD to once again record fresh YTD lows in the 1.1750/40 band.

EUR/USD weaker on USD-rally

The pair is down for the sixth session in a row today, coming under persistent selling pressure in light of the so far unabated rally in the greenback.

In fact, tracked by the US Dollar Index (DXY), the buck navigates the area of fresh 2018 tops around 93.80 following a rebound in yields of the US 10-year note to daily highs near 3.08%.

On the positioning front, the unwinding of speculative longs continued during the week ended on May 15, taking the net long positions to the lowest level since December 27 2017, according to the latest CFTC report.

Nothing scheduled in both Euroland and the US dockets today, whereas speeches by Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish) should keep the attention on the buck.

EUR/USD levels to watch

At the moment, the pair is losing 0.24% at 1.1743 and a breakdown of 1.1741 (2018 low May 21) would target 1.1718 (monthly low Dec.12 2017) en route to 1.1553 (monthly low Nov. 7 2017). On the flip side, the next resistance aligns at 1.1846 (10-day sma) seconded by 1.1961 (21-day sma) and finally 1.1996 (high May 14).