EUR/USD under pressure sub 1.06, hits fresh 1-month low

EUR/USD is under selling pressure early doors on Monday, with the rate trading into a fresh 1-month low at 1.0580,as the technical picture continues to worsen for the interest of potential buyers. 

The rise in US yields, with the 30-year bond being sold-off decisively last Friday - despite the US showed a soft jobs report - has undoubtedly benefited the US Dollar. The worse-than-expected US NFP data was partly blamed on deteriorating weather conditions, which may have been one of the drivers behind the fade move seen in favour of buying US Dollars.

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As Valeria Bednarik, Chief Analyst at FXStreet, notes: "According to official numbers, the US economy added 98,000 new jobs in March, whilst February figure was downwardly revised from 235K to 219K. The unemployment rate fell to 4.5%, its lowest in near ten years from previous 4.7%. Wages rose by 0.2% in the month, while average hourly earnings up 2.7% on an annualized basis."

EUR/USD technicals

Valeria adds her technical view, writing: "The EUR/USD pair is poised to extend its decline during the upcoming week, given that in the daily chart, it settled below its 100 DMA for the first time in over a month, whilst technical indicators head south within negative territory, also at fresh 1-month lows. Shorter term, the 4 hours chart  shows that the price finally extended below its 20 and 200 SMAs, with the shortest gaining downward scope, whilst the RSI indicator maintains its strong downward slope near 23. The pair has quite a relevant support at 1.0565, the 23.6% retracement of the post-US election decline, with a break below it opening doors for a steeper decline afterwards, with the market then eyeing 1.0490, February monthly low."