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EUR/USD on its way to… 1.3700?

FXStreet (Edinburgh) - The single currency is intensifying its intraday decline on Wednesday, dragging the EUR/USD to a test of the 1.3715/10 area so far.

EUR/USD testing weekly lows

The pair is on its way to test the weekly troughs around the key support at 1.3700 posted last Monday, as the selling interest seems to gather steam amongst traders. “The EUR looks a little “rich” in our opinion and while the market seems reluctant to challenge the recent range peaks, there is little incentive—at the moment—to push the EUR lower. Eurozone inflation data (national and aggregate) for February dues in the next two days and well as tomorrow’s money supply data may alter dynamics a little”, suggested Shaun Osborne, Chief FX Strategist at TD Securities.

EUR/USD key levels

At the moment the pair is down 0.13% at 1.372 and a breakdown of 1.3710 (10-d MA) would target 1.3702 (low Feb.21) en route to 1.3685 (low Feb.20). On the upside, the initial hurdle lines up at 1.3768 (high Feb.25) ahead of 1.3773 (high Feb.19) and then 1.3796 (76.4% of 1.3894-1.3477).

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