EUR/USD extends the retreat below 1.1400 on Fed’s Williams

After a brief period of consolidation near 1.14 handle, the EUR/USD pair met fresh supply stepping into early Europe, now breaking lower below NY low of 1.1387.

EUR/USD trades below 10-DMA at 1.1392

The spot came under renewed selling pressure after the US dollar received a fresh lift across the board, following the Fed policymaker Williams hawkish comments delivered last hours. The USD index jumps +0.13% to three-day tops of 95.94 en route 96 handle.

Fed Williams wants to start balance sheet adjustment in next few months

Moreover, persisting risk-on trades amid higher Treasury yields as well as Asian equities, further added to the downside bias in the funding currency Euro. However, the losses may remain capped by 1.1350 levels, as the recent hawkish twist delivered by the ECB Chief Draghi & his company will continue to lend support to the prices.

In the day ahead, the major will track the USD dynamics amid a lack of fundamental drivers until the NY session, where the US JOLTS job openings and FOMC member Brainard’s speech is due on the cards.

EUR/USD Technical Levels

According to Jim Langlands  at FX Charts, “The dailies are also not telling us a lot so once again, selling rallies with a tight SL above the 1.1445/55 resistance seems to be the short-term plan. Longer term players may continue to look to buy dips. For today a range trade seems in store. Use 1.1370/1.1440 as a guide.”

“Minor support lies at the 7 July/session low of 1.1380 and then at 1.1350/55, below which could see a return to 1.1320/30 and possibly to 1300/10. Below here may see a move to 1.1280 and possibly to 1.1260, but down here, buying dips still seems to be the plan given the positive look of the longer term momentum indicators.”