EUR/USD drops further post-US releases, around 1.1150

The downside momentum in the single currency stays everything but abated on Thursday, now pushing EUR/USD to record fresh lows in the vicinity of 1.1150.

EUR/USD lower on upbeat US data

The selling pressure around the pair has intensified today after US Initial Claims, the NY Empire State manufacturing index and the Philly Fed manufacturing index have all surprised to the upside, adding extra support to the buck.

In the meantime, the pair stays under pressure as market participants continue to digest yesterday’s FOMC meeting, where the Committee raised the Fed Fund range target to 1.00%-1.25%, matching the broad consensus.

Spot is putting to the test the critical short-term support line in the 1.1160/55 band, above which the bullish perspective should remain unchanged.

Further US releases scheduled for later in the session include May’s industrial production, capacity utilization, the NAHB index and TIC flows.

EUR/USD levels to watch

At the moment, the pair is losing 0.61% at 1.1150 and a breakdown of 1.1108 (low May 30) would target 1.1073 (76.4% Fibo of 1.1300-1.0339) en route to 1.0960 (55-day sma). On the flip side, the initial hurdle lines up at 1.1296 (2017 high Jun.14) seconded by 1.1300 (high Nov.9) and finally 1.1367 (high Aug.18 2016).

It is worth noting that the constructive stance remains intact while above the near-term support line, today at 1.1166. The bearish divergence in the daily RSI, however, seems to lend further support to a correction lower in the next weeks.