EUR/USD is now pushed down to its lowest level since 12 August, falling to a session low of 1.1720 and closing in on the 12 August low @ 1.1711. The 1.1700 handle is now the key level to watch out for on the daily chart.
If that and the 3 August low @ 1.1696 gives way, things could turn rather ugly for the euro over the next few sessions.
The softer risk mood seen in US futures are still part of the reason fueling bids in the dollar and yen today, but ultimately the stretched positioning over the past two months or so is another important factor to consider for EUR/USD.
The slight squeeze here may still end up being bought by buyers but for a better sense of that, the technical levels pointed out above will help us determine things.
If the 1.1700 handle is firmly broken, the dollar rally looks set to extend further and an extended squeeze is very much on towards 1.1500 potentially.