EUR/USD breaks below 1.1800, fresh 5-week lows

The selling pressure is now picking up extra pace around the European currency, dragging EUR/USD to the area of fresh multi-week lows in sub-1.1800 levels.

EUR/USD weaker ahead of Yellen, looks to Macron

The pair is extending the weekly leg lower following yesterday’s ‘doji-like’ candle, all amidst renewed jitters in response to the recent elections in Germany, while the pick up in the demand for the greenback has been also collaborating with the downside.

Furthermore, market participants seem to favour the Sterling in the current context, pushing EUR/GBP lower and thus forcing EUR/USD to re-visit levels last seen 5-weeks ago in the 1.1790 area.

Additionally, the pair broke below the critical 5-month support line around 1.1880, accelerating the downside.

Looking ahead, French President E.Macron is due to speak. Further out, USD should be in centre stage ahead of the speech by Chief J.Yellen seconded by Cleveland Fed L.Mester (2018 voter, hawkish), FOMC’s L.Brainard (permanent voter, dovish) and Atlanta Fed R.Bostic (2018 voter).

In addition, August’s new home sales are due seconded by the Conference Board’s gauge of consumer confidence for the month of September.

EUR/USD levels to watch

At the moment, the pair is losing 0.50% at 1.1789 and a breakdown of 1.1736 (38.2% Fibo of the 2014-2017 drop) would target 1.1722 (200-week sma) en route to 1.1662 (low Aug.17). On the upside, the initial hurdle emerges at 1.1912 (10-day sma) followed by 1.1926 (21-day sma) and finally 1.2033 (high Sep.20).