EUR/USD dives farther below 1.19 handle, fresh YTD lows

   •  USD jumps to over 4-month tops and keeps exerting downward pressure.
   •  Technical selling below 1.19 mark further aggravated the downfall.

The EUR/USD pair continued losing ground through the mid-European session and is currently placed at fresh yearly lows, around the 1.1870-60 region. 

The pair's relentless fall witnessed over the past one-month or so remains unabated and was further weighed down by persistent USD buying interest. In fact, the key US Dollar Index jumped to its highest level in more than four months, closer to the 93.00 handle, and kept exerting downward pressure on the major.

Meanwhile, possibilities of some trading stops being triggered and (or) fresh technical selling on a decisive break below the 1.1900 handle could also be one of the factors behind the pair's sharp slide since the early European session.

It would now be interesting to see if the pair is able to find any buying interest at lower levels or bears continue to maintain their dominant position as market participants look forward to the US President Donald Trump's decision on the Iran nuclear deal, scheduled later in the day.

Technical levels to watch

Immediate support is pegged near mid-1.1800s, below which the pair seems vulnerable to head towards testing the 1.1810-1.1800 support area. On the flip side, any recovery attempts might now confront fresh supply near the 1.1900 handle, which if cleared might trigger a short-covering bounce towards the 1.1945-50 intermediate resistance en-route the key 1.20 psychological mark.