EUR/USD drop shaping up, eyes on 1.3200

FXstreet.com (Edinburgh) -The selling pressure is now picking up pace around the bloc currency, dragging the EUR/USD to another test of the key support at 1.3200 the figure.

EUR/USD back to the red territory

The pair is now heading towards the lower 1.3200/1.3190 band, as market participants continue to digest this morning’s PMI prints and the risk appetite is now taking a breather. “The turn lower in spot from the 1.34 area suggests that a top may be in now and we want to try to get short on any modest rebound from here. We will look to sell at 1.3285, risking 1.3415 – just above the recent high – and targeting a drop to 1.27 (our end Q3 forecast)”, recommended Shaun Osborne, FX Strategist at TD Securities.

EUR/USD levels to watch

At the moment the pair is losing 0.06% at 1.2306 and a break below 1.3192 (low Sep.2) would open the door to 1.3173 (low Aug.30) and then 1.3143 (MA200d). On the upside, the initial hurdle aligns at 1.3255 (high Aug.30) followed by 1.3298 (low Aug.22) and finally 1.3322 (low Aug.27).

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