EUR/USD extends losses, approaches 1.1100

EUR/USD extended losses to fresh 2-week lows, having already erased the nonfarm payrolls inspired gains seen early this month, as the greenback continues to gain traction across the board despite a dovish stance from the Fed.

EUR/USD broke decisively below this week’s support area around 1.1180 and fell to 1.1130 in recent dealings. Mounting fears of a Brexit continue to support risk-off trades, boosting the US dollar. At time of writing, the pair is trading at 1.1155, recording a 0.92% loss on Thursday.

Below expectations US consumer prices figures did little to temper the USD rally. Data showed consumer price index increased a seasonally adjusted 0.2% in May (0.3% exp) from the prior month, and 1.0% YoY (1.1% exp). The so-called core prices, which exclude food and energy, remained subdued as well, up 0.2% and 2.2% for the month and the year respectively.

EUR/USD levels to watch

As for technical levels, EUR/USD immediate supports  could be found at 1.1102/00 (200-day SMA/psychological level) and 1.1057 (Mar 16 low). On the flip side, resistances are seen at 1.1300 (50-day SMA/psychological level), 1.1320 (Jun 10 high), 1.1415 (Jun 9 high) and 1.1445 (May 11 high).