EUR/USD falls to a low of 1.1985, its lowest level since 1 December
Sellers are starting to get comfortable after testing the waters earlier, with the push lower gradually gathering some momentum.
The daily close is still the key thing to watch but there is also support nearby from the 50.0 retracement level and 100-day moving average (red line) in the region of 1.1966-76.
That provides an additional layer of defense for buyers but the break of the figure level is certainly significant. The dollar index is trading up to two-month highs now as the greenback also pushes gains against the likes of the pound and yen.
If the support region below 1.2000 highlighted above gives way, it is a slippery slope for EUR/USD thereafter (and that is a positive bias for the dollar).
