EUR/USD falls further, hits lowest level since early August

EUR/USD pushed a tad lower and made fresh 2-month lows during the New York session, with investors ignoring upbeat ZEW data from the Eurozone, while the dollar trades broadly firmer amid expectations of a rate hike this year.

The US dollar has gained upward momentum over the last sessions, while investors’ focus remains mainly on tomorrow’s FOMC minutes. Growing expectations of another rate alongside with higher US yields, have given the greenback extra tailwinds.

EUR/USD has fallen more than 150 pips from post-NFP highs and recently struck a low of 1.1053, last seen Aug 5. At time of writing, the pair is trading at 1.1058, down 0.7% on the day.

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at  1.1045 (Aug 5 low) and 1.1000 (psychological level) ahead of 1.0960 (Jul 27 low). On the other hand, resistances line up at 1.1169 (200-day SMA), 1.1203 (50-day SMA) and 1.1250/58 (Sep 30 high/Sep 27 high).