EUR/USD: Sell-off extends below 1.1050 amid risk-aversion

The bearish pressure on the EUR/USD pair accentuated over the last hour, sending the rate further south to fresh four-day lows near 1.1040 region.

EUR/USD losing sight of 200-DMA at 1.1092

Currently, EUR/USD now trades -0.32% lower at fresh session lows of 1.1041 struck last minutes. The shared currency accelerates the downside momentum against its American counterpart in the Asian session so far, as markets continue to favour the greenback against most majors amid persisting classic risk-off theme.

Moreover, extended sell-off in the cable on increased expectations of a BOE rate cut in the upcoming months post-Brexit, also continues to weigh heavily on the European currency. The GBP/USD pair slumped to the lowest levels since 1985 at 1.2928 last minutes, down -0.68% on the day.

Further, markets remain wary ahead of ECB’s President Draghi’s speech and release of FOMC June 15 meeting minutes due later today, both events bringing the divergent monetary policy outlook back in the spotlight.

Data-wise, nothing of note is seen during the EUR session, while the NA session offers the US goods trade balance and ISM services PMI report. Besides, FOMC member Tarullo is likely to deliver a speech about financial regulation and monetary policy at the Wall Street Journal Breakfast Conversation in Washington.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1092/1.1100 (200-DMA/ round number). A break beyond the last, doors will open for a test of 1.1146/50 (daily R2/ psychological levels). On the flip side, the immediate support is placed at 1.1022 (Jun 30 low) below which 1.1006/00 (Jun 26 low/ round figure) could be tested.