EUR/USD drops to lows near 1.2350, Fedspeak eyed

• Spot loses momentum in the mid-1.2300s.
• USD regains buying interest, near 89.80.
• Fedspeak next of relevance.

The selling pressure around the shared currency is now gaining traction and forcing EUR/USD to test the upper end of the daily range in the mid-1.2300s amidst a pick up in the demand for the greenback.

EUR/USD now looks to Fedspeak

Spot has reverted yesterday’s small uptick following the ‘indecision candle’ and is now hovering over the 1.2350 area, or daily lows, and remains exposed to further weakness in a context of prevailing buying interest surrounding the buck.

Market participants remain buyers of the US Dollar in spite of the softer tone in yields of the US 10-year reference and ahead of the upcoming speeches by New York Fed W.Dudley (permanent voter, centrist) and Chicago Fed C.Evans (2019 voter, centrist) followed by the EIA’s weekly report on US crude oil supplies.

In the meantime, the pair has broken below the accelerated short-term support line off 2018 lows recorded back in January, intensifying the prospects for further downside along the road.

EUR/USD levels to watch

At the moment, the pair is losing 0.24% at 1.2346 facing the immediate support at 1.2315 (low Feb.6) followed by 1.2307 (21-day sma) and finally 1.2167 (50% Fibo of the 2014-2017 drop). On the other hand, a breakout of 1.2413 (10-day sma) would target 1.2522 (high Feb.2) en route to 1.2537 (2018 high Jan.25).