EUR/USD revisits lows in 1.0920 region

The EUR/USD pair fell to its daily low at 1.0917 in the early trading hours of the NA session and made a recovery to 1.0930/35 region before coming back under a renewed selling pressure in the late US afternoon. At the moment, the pair is trading at 1.0920, losing 0.7% on the day.

This latest drop witnessed in the pair is seen nothing more than a technical move as it hadn't been supported by a fundamental development. The USD strength continues to cap any recovery attempts on Monday. The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, is headed to a daily close above 99 for the first time since last week's FOMC driven rise on May 5. As of writing, the index was at 99.03, up 0.62% on the day.

Other than the industrial production and the trade balance figures from Germany, tomorrow's economic calendar won't be featuring any data that could impact the price action. The euro could continue to remain under pressure against the greenback as the odds of a Fed June rate hike is likely to keep the demand high for the USD. 

• Macron trade unwound and Fed chat less hawkish noting poor data

Technical outlook

The pair could face the first resistance at 1.10 (psychological level) ahead of 1.1020 (daily high) and 1.1070 (Nov. 8 high). To the downside, supports align at 1.0900 (psychological level), 1.0820 (Apr. 24 low) and 1.0770 (200-DMA).

• EUR/USD likely to trade above 1.10 in 3 month – Danske Bank