EUR/USD turns negative near 1.1210

The shared currency lost its initial shine on Monday, now dragging EUR/USD to the area of daily lows near 1.1210.

EUR/USD now weaker ahead of Fedspeak

The pair is now retreating for the second straight session, coming down from last week’s tops near 1.1330 (after briefly pierced the resistance line off 2016 top) amidst a persistent bid tone in the greenback.

Speculations of a Fed’s rate hike at some point in the next months have been on the rise as of late and the exclusive source of strength for USD, with Fed Funds future prices pointing to a 24% probability of a hike later in the month (according to CME Group’s FedWatch tool).

Later in the NA session, markets will remain vigilant on the speech by FOMC’s L.Brainard on ‘Economic Outlook’ ahead of the blackout period, always with a rate hike in the centre of the debate. It is worth recalling that L.Brainard is the most dovish FOMC member.

EUR/USD levels to watch

The pair is now retreating 0.13% at 1.1220 facing the next support at 1.1207 (2014-2016 support line) ahead of 1.1143 (200-day sma) and finally 1.1043 (low Aug.5). On the other hand, a break above 1.1301 (resistance line off 2016 high) would target 1.1329 (high Sep.8) and then 1.1367 (high Aug.18).