EUR/USD drops further to 1.1160, session lows

The better tone around the greenback at the beginning of the week is forcing EUR/USD to recede from 6-month tops above 1.1200 the figure and test the area of daily lows around 1.1160.

EUR/USD focus on Eurogroup, Fedspeak

After briefly breaking above the 1.1200 handle for the first time since early October, the upside momentum in spot seems to have run out of vigour and is now hovering over the 1.1170/60 band, or daily lows.

Some profit-taking mood in light of the recent strong gains seems logic, while the renewed buying interest around the buck is also collaborating with the downside. The US Dollar Index (DXY) has managed to find some buyers in recent fresh 6-month lows in the 97.00 neighbourhood, currently flirting with session highs near 97.30.

Absent relevant releases in Euroland today, markets’ attention should be on the Eurogroup meeting, where Greece and Brexit should be on top of the agenda.

Across the pond, FOMC’s L.Brainard (permanent voter, centist), Philly Fed P.Harker (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are all due to speak in an otherwise empty calendar.

Despite the ongoing leg lower, EUR remains supported by the speculative community, where net longs continued to rise during the week ended on May 16 according to the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is retreating 0.29% at 1.1176 and a break below 1.1073 (76.4% Fibo of 1.1300-1.0339) would target 1.0973 (20-day sma) en route to 1.0826 (200-day sma). On the flip side, the next hurdle aligns at 1.1214 (2017 high May 19) followed by 1.1300 (high Nov.9 2016).