EUR/USD bounces off lows near 1.1750

After briefly testing session lows in the mid-1.1700s, EUR/USD managed to grab some attention and is now flirting with the 1.1770 area.

EUR/USD focused on USTs, Catalonia

Spot is extending the leg lower from last Friday and trading just pips away from last week’s lows in the 1.1735/30 band amidst a persistent bid mood surrounding the greenback.

USD has been gathering extra traction since Thursday, after the US Senate approved a blueprint of the federal budget that could fast-track the long-waited tax reforms promised by the Trump’s administration.

The down-move in spot has been in tandem with a healthy improvement in yields of the key US 10-year benchmark, trading around the critical 2.40% handle.

On the positioning front, EUR speculative net longs retreated to 4-week lows in the week ended on October 17, according to the latest CFTC report.

In the data space, the European Commission will publish its advanced gauge of consumer confidence for the month of October later today, while flash PMIs in the region are due tomorrow ahead of the ECB meeting on Thursday.

EUR/USD levels to watch

At the moment, the pair is losing 0.10% at 1.1772 facing the next support at 1.1730 (low Oct.18) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17). On the upside, a break above 1.1858 (high Oct.20) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2).