EUR/USD: 1.0700 at sight

EUR/USD came under some fresh selling pressure on Wednesday. The near-term set-up remains tilted in favour of bearish trades, according to FXStreet’s analyst Haresh Menghani.

Key quotes

“It will be prudent to wait for a sustained weakness below the 1.0775-70 region before positioning for any further near-term depreciating move. 

“Below the 1.0775 support, the EUR/USD pair is likely to accelerate the fall towards challenging the 1.0700 round-figure mark before eventually dropping to test YTD lows, around the 1.0635 area.”

“On the flip side, the 1.0900 round-figure mark might continue to act as an immediate resistance, above which a bout of a short-covering move has the potential to lift the pair further towards 50-day SMA, around the 1.0970-75 region.”