Influenced by the wide-scaled dollar resistance, EUR/USD has expanded its daily slide and touched its lowest since December 2002 below 1.0340. The other lowest target for the pair aligns at 1.0260 but the oversold conditions suggest that there might be a technical correction before the next leg lower.
The US Dollar Index, which traces the greenback’s performance in opposition to its major opponent, is trading at its highest level in nearly two decades and thrusting higher toward 106.00.
The careful marketplace temper is likewise presenting a further increase to the dollar following the long weekend withinside the US. The Euro Stoxx six hundred Index erased its profits after starting in advantageous territory and US inventory index futures are down round 0.2%. In the second half of the day, May Factory orders could be the handiest facts featured withinside the US financial docket. Meanwhile, the S&P Composite PMI for the eurozone arrived at fifty two in June, displaying that the enterprise pastime withinside the non-public quarter elevated at a smooth pace.
In case safe-haven flows keep to dominate the economic markets following Wall Street’s commencing bell, the pair is probable to live below bearish pressure. The US monetary docket will function May Factory Orders records later withinside the day however the threat belief ought to keep to power EUR/USD’s action.