EUR/USD falls to one-month low as dollar extends gains

Technical Analysis

Author: Justin Low | eurusd

EUR/USD falls to 1.1190, lowest level since 19 June

EUR/USD H1 23-07
Sellers are looking for a fresh break to the downside after the pair has been largely ranging between 1.1200-80 over the past two weeks. The low today now takes out the July low of 1.1193 and falls to its weakest level since 19 June.

Looking at the bigger picture:

EUR/USD D1 23-07
Further daily support is seen closer to 1.1177-84 so that will be a key area that sellers will have to break below in order to extend a move further to the downside.

The dollar is continuing to firm on the session as it trades to session highs against all major currencies across the board. The move is largely flow-related with news of the debt ceiling deal also in part not doing the greenback any harm on the day.

But it's all about expectation ahead of the FOMC meeting next month right now. That said, Treasury yields are only a tad higher so I'm not sure if we can see gains in the greenback be sustained without a follow through from bonds ahead of the Fed.

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