EUR/USD unmotivated near 1.1380

Not much happening around EUR/USD following the opening bell in Wall St, currently hovering over the area of daily lows near 1.1380.

EUR/USD upside still capped near 1.1450

The pair moved lower on Monday, extending the downside for the second consecutive session after being rejected once again from the 1.1440 area, levels tested in the wake of US non-farm payrolls (Friday).

The area around the mid-1.1400s stays a tough barrier for EUR-bulls for the time being, and the inability to surpass it could open the door to some exhaustion and the potential unwinding of long positions, which could in turn intensify the correction lower.

In addition, the recent performance from EUR futures markets allows spot to attempt a rangebound theme in the very near term, although any hint at the direction of the eventual breakout remains premature.

In the meantime and from the positioning front, EUR speculative net longs stayed on the rise during the week ended on July 3, advancing to 3-week tops as per the latest CFTC report.

EUR/USD levels to watch

At the moment, the pair is losing 0.09% at 1.1389 facing the immediate support at 1.1382 (low Jul.10) followed by 1.1311 (low Jul.5) and finally 1.1278 (21-day sma). On the other hand, a breakout of 1.1448 (2017 high Jun.30) would target 1.1466 (high Apr.12 2016) en route to 1.1616 (2016 high May 3).


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