EUR/USD drops to 23.6% Fibo support

EUR/USD pair continues to lose ground amid broad based USD strength, now trading just below 1.1241 (23.6% of 1.0517-1.1465).

Stocks open mixed, EUR remains weak

European stock markets have opened on a flat note, with UK’s FTSE trading lower by 0.17% and German DAX trading higher by 0.10%. Dollar continues to stage a sharp recovery across the board with EUR turning out to be a major casualty of the same as technical sellers are making their presence felt following a bearish break below 1.1340 yesterday.

Stock markets are likely to guide the action in the pair ahead of the final Eurozone CPI reading. Later in the day, weekly jobless claims and US CPI are due for release.

EUR/USD Technical Levels

The pair is now trading around 1.1238. Immediate hurdle is noted at 1.1268 (previous day’s low) above which the spot may have a relook at 1.13, which is followed by a major hurdle at 1.1342 (Mar 17 high). Conversely, acceptance below 1.1236 (38.2% of Mar 2015 low-Aug 2015 high) would open doors for a possible cut through 1.12 and drop to next support at 1.1144 (Mar 24 low).