The EURUSD currency pair dropped to its lowest level on Monday at 1.0575 due to the weakening of the Euro and the strengthening of the US Dollar.

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• The EUR/USD skidded to a Monday low of 1.0575 as the Euro slips and the Greenback steps higher.

The pair currently trades last at 1.05871.

The previous day high was 1.0672 while the previous day low was 1.0615. The daily 38.2% Fib levels comes at 1.0637, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.065, expected to provide resistance.

The EUR/USD fell off of recent action to settle at a fresh six-month low at the 1.0660 handle. Broadbase US Dollar (USD) support is helping to exacerbate Euro (EUR) declines sparked by dovish central bank comments coming out of Europe on Monday.

The European Central Bank’s (ECB) President Christine Lagarde hit newswires on Monday, noting lagging job growth, broadly weaker economic activity, and an overall decline in momentum.

Despite recent declines in inflation, the ECB’s President Lagarde noted that inflation is expected to remain “too high for too long”, but the ECB is evidently unable to do anything to help assuage those forecasts, with an uneven domestic economy for the pan-European region threatening to tip over into recession if the ECB raises rates too much.

Read more:

Lagarde speech: Recent indicators point to further weakness in third quarter

Lagarde speech: Recession is not part of baseline

The later end of the trading week sees Consumer Price Index (CPI) figures for both the EU and the US slated for Friday, but the midweek is a nominally lighter affair.

The US will see Personal Consumption Expenditure (PCE) figures on Thursday, as well as Gross Domestic Product (GDP) numbers. Annualized GDP for the US’ second quarter is expected to improve from 2.1% to 2.3%.

Intraday action sees the EUR/USD sharply off near-term swing highs near 1.0670, tumbling 0.76% peak-to-trough on Monday.

The Euro slipped to a fresh six-month low of 1.0575 against the US Dollar, and rebound bids are struggling to regain the 1.06000 handle.

On daily candlesticks, a bearish trend is firmly baked in, with a declining trendline from July’s swing high near 1.1200.

The 200-day Simple Moving Average (SMA) is turning bearish just north of 1.0800, and the 34-day Exponential Moving Average (EMA) is accelerating into a bearish cross, providing technical resistance from 1.0750.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0595 at the time of writing. Pair opened at 1.0648 and is trading with a change of -0.5 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0738, 50 SMA 1.0885, 100 SMA @ 1.0877 and 200 SMA @ 1.083.

The previous day high was 1.0672 while the previous day low was 1.0615. The daily 38.2% Fib levels comes at 1.0637, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.065, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0618, 1.0588, 1.0562
• Pivot resistance is noted at 1.0675, 1.0702, 1.0731

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