EUR/USD breaks below 200-DMA, hits fresh session low at 1.1075

A fresh bout of selling pressure seems to have emerged during early NY trading session, dragging the EUR/USD pair to session low around 1.1075 region. 

During early Asian session, the pair a tepid recovery back above 1.1100 handle but failed to build on to its gains. After consolidating within a narrow trading range and defending 200-day SMA region for major part of the European trading session, the major finally seems to have broken below the very important support and hence, could extend its downslide.

The greenback is benefitting from reviving hope of an eventual Fed rate-hike action following the release of stronger-than-expected employment details for the month of July. Meanwhile, the shared currency has failed to extract any support from mostly in-line with expected German industrial production and better-than-expected Sentix Investor Confidence data, released earlier on Monday.,

An empty economic docket is unlikely to provide any fresh impetus while the pair might continue to be driven by sentiment surrounding the US Dollar and investors' appetite towards riskier assets - like equities.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the short term picture is neutral, given that in the 1 hour chart the technical indicators head nowhere around their mid-lines. Also, the price is hovering around a horizontal 20 SMA while below the 50% retracement of its latest bullish run at 1.1095. In the same chart the 100 SMA heads lower far above the current level, keeping the risk towards the downside. In the 4 hours chart, the 20 SMA extended its decline above the current level, now around 1.1186, whilst the technical indicators turned flat within bearish territory and after correcting oversold readings, in line with the shorter term view."

"Support levels: 1.1045  1.1010 1.0970
Resistance levels: 1.1095 1.1130 1.1160"