- EUR/USD extends the decline to the vicinity of 1.0200.
- The dollar seems supported by the risk aversion sentiment.
- The US NAHB Index, TIC Flows and New York Empire Index will be released later.
The selling bias continues to dominate the mood around the European currency and drags the EUR/USD to new lows in three days in the area of ​​1.0200 at the beginning of the week. The pair has lost nearly 70 pips so far on Monday, falling from a daily high at 1.0268 to a six-day low at 1.0200.
EUR/USD weakens on dollar buying
EUR/USD lost ground for the second consecutive session on Monday, as the dollar continues to recover lost ground against a backdrop of risk aversion and amid losing momentum in German yields.
In fact, the pair started the week on the wrong foot in response to the poor performance on the Chinese docket earlier in the session. Additionally, the PBoC lowered the 7-day reverse repo rate to 2.00%.
There is no data scheduled in the Eurozone, while the NAHB Index, New York Empire Index and TIC flows are due out later in the US session.
EUR/USD Featured Levels
At time of writing, the pair is trading above 1.0206, losing 0.53% daily, and a break below 1.0096 (weekly low Jul 26) would target 1.0000 (psychological level) on track towards 0.9952 (2022 low Jul 14).
On the other hand, the next upside barrier is at 1.0368 (Monthly High Aug 10), followed by 1.0514 (100-Day SMA) and finally 1.0615 (Weekly High Jun 27).
Source: Fx Street
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