EUR/USD slides further below 1.1900 as USD strengthens

• US Dollar rises sharply as Powell testifies at the Senate Banking Committee. 
• DXY having best day in a month. 
• EUR/USD correction continues under 1.1900. 

The EUR/USD pair dropped back below 1.1900 and reached a fresh daily low at 1.1863. The slide took place amid a rally o the US Dollar particularly against European currencies. A move to the upside in EUR/GBP offered some support to the EUR/USD decline. 

The main event at the moment is Jerome Powell's testimony at the Senate Banking Committee. So far he has been very prudent with his words. When asked about a rate hike in December, he clearly pointed that a hike was likely warranted. He mentioned that wages do no indicate some kind of overheating in the economy. 

Powell’s words so far had no major impact on markets. US bonds are rising modestly while equity prices are also higher with the Dow Jones index at all-time-highs. The US Dollar Index rose above 93.00 and it was at 93.11 at the moment of writing, up 0.3% having the best day in a month. The DXY was extending its recovery after falling yesterday to the lowest in two months. 

Technical levels 

EUR/USD was hovering near the low at 1.1870,  under 1.1860 support levels might be seen at 1.1835 (Nov 24 low), 1.1805 (Nov 17 high) and 1.1755 (Nov 16 low). On the upside, the FXStreet's technical confluence indicator shows 1.1905, 1.1920 and 1.1965 as resistance areas.