EUR/USD tumbles to lows near 1.1770 ahead of ZEW

The selling pressure around the single currency is now gathering fresh traction, dragging EUR/USD to test daily lows in the 1.1770 region.

EUR/USD focus on ZEW

After advancing to the 1.1830 region late on Monday following a bout of USD-weakness, the pair seems to have found a tough resistance and is now slipping back below the critical support at 1.1800 the figure ahead of the publication of the German ZEW results.

There is no other visible catalyst for the knee-jerk other than renewed upside in US yields, where the 10-year reference has regained the 2.20% barrier and above, clinching session tops at the same time.

Looking ahead, spot is expected to extend the sideline theme in light of the speeches by President M.Draghi and Chairwoman J.Yellen at the Jackson Hole Symposium on Thursday and Friday. in this regard, opposing rumours regarding the tone of Draghi at his speech appear to drive the sentiment around EUR for the time being.

EUR/USD levels to watch

At the moment, the pair is retreating 0.33% at 1.1777 and a breach of 1.1661 (low Aug.17) would target 1.1630 (5-month up trend) en route to 1.1611 (low Jul.26). On the other hand, the initial hurdle aligns at 1.1828 (high Aug.21) followed by 1.1846 (high Aug.11) and finally 1.1894 (high Aug.3).