The sentiment around the European currency remains depressed and EUR/USD sinks further into the negative ground, reaching at the same time new multi-day lows in the 1.1880/75 band. EUR/USD accelerates the downside after breaking below 1.1900 the figure, as fresh oxygen revives the buying interest around the greenback. No news from the bond markets, where US yields remain apathetic around 1.50%, while the German 10-year Bund shows some signs of life in the -0.16%.

Sellers seem to have regained the upper hand and drag EUR/USD back to the vicinity of the 1.1900 key support. In the meantime, price action in the spot is expected to monitor the dollar dynamics, particularly following the latest FOMC gathering, prospects of higher inflation, and potential tapering before anticipated. Further out, support for the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity, and the investors’ appetite for riskier assets. So far, the spot is losing 0.26% at 1.1891 and a break below 1.1847 (monthly low Jun.18) would target 1.1835 (low Mar.9) and route to 1.1704 (2021 low Mar.31). On the other hand, the next resistance emerges at 1.1994 (200-day SMA) followed by 1.2026 (100-day SMA), and finally 1.2064 (38.2% Fibo retracement of the November-January rally).