EUR/USD holds at 3-week lows, unable to recover above 1.0600

The euro is consolidating daily losses against the US dollar and is headed toward the lowest daily close since January 11. EUR/USD peaked earlier at 1.0657 but then turned to the downside amid a stronger US dollar across the board. 

The pair bottomed after the beginning of the American session at 1.0591 and since then is has been trading in a range between the daily low at 1.0610, consolidating losses. The euro was unable to make a sustained recovery and continues to be among the weakest currencies in Europe. EUR/GBP dropped to 0.8470, the lowest since January 27.

EUR/USD: bearish pressure increasing 

Price is holding below the 55-day moving average for the first time in almost a month. It remains moving with a bearish bias. If the pair climbs above the short-term downtrend that currently stands at 1.0650, it could remove some of the USD strength from a technical perspective. 

To the downside, the next support could be seen at 1.0580 (Jan 16 low), followed by 1.0550 (Nov 30 low). 

Events ahead

The pair continues to be affected by political uncertainty in the Eurozone, potential Trump’s announcement and on Tuesday traders will follow Janet Yellen’s testimony to Congress.