EUR/USD probing daily lows near 1.1730

The buying pressure around the greenback remains unabated at the beginning of the week and is now dragging EUR/USD to fresh session lows in the 1.1730 area.

EUR/USD weaker on USD-strength

The pair is trading in fresh 3-day lows amidst a persistent bid tone around the greenback, with yields of the US-10 year reference testing the boundaries of recent tops around 2.40% and thus widening the differential vs. their German peers.

Pressure on spot has intensified after the US Senate approved the federal budget last Thursday and investors are considering this as a fast-track for the implementation of the long-waited tax reform proposed by the Trump’s administration.

Furthermore, the pair is expected to stay under scrutiny in light of the upcoming ECB meeting on Thursday, where consensus seems to lean towards a somewhat dovish tone regarding QE ‘tapering’.

On the positioning front, EUR speculative net longs retreated to 4-week lows in the week ended on October 17, according to the latest CFTC report.

In the data space, the European Commission will publish its advanced gauge of consumer confidence for the month of October later today, while flash PMIs in the region are due tomorrow ahead of the ECB meeting on Thursday.

Across the pond, the Chicago Fed National Activity index came in above expectations at 0.17 for the month of September.

EUR/USD levels to watch

At the moment, the pair is losing 0.38% at 1.1739 facing the next support at 1.1730 (low Oct.18) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). On the upside, a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2).