EUR/USD down 0.2% to 1.1265 on the day

It is tough to pick at support levels for the pair over the past two weeks but the 61.8 retracement level of the swing higher from March last year to January this year @ 1.1290 and the 1.1300 did offer some light reprieve last week before it got broken.

Now, things are looking dire for the euro against the dollar as the technicals are suggesting that there isn't much relief on the way down. A look at the weekly chart:

EUR/USD W1 22-11

The dollar has been the standout performer in the past two weeks and going by the EUR/USD chart above, it is hard to argue against the greenback still at the moment.

That's a cautionary sign for dollar pairs elsewhere, especially with Fed officials even starting to tilt more hawkishly as seen towards the end of last week.

Fed vice chair Clarida signaled an openness to speeding up the tapering process and that could see rate hikes come earlier, especially if inflation data continues to run hotter than estimated in the months ahead surely.

That will arguably maintain a strong tailwind for the dollar and with the technicals still holding up as they are, it is tough to stand in the way of the greenback for now.

Going back to EUR/USD, 1.1200 is the next target for sellers before potentially talking about 1.1000. The latter may seem like a bit of a stretch so perhaps there might be some form of retracement before traders reassess the move again moving forward.