EUR/USD drops fresh four-month lows around 1.1740

• US dollar gains momentum during the American session amid higher US yields.
• EUR/USD head for the lowest daily close since March 31.

The EUR/USD turned to the downside and printed a fresh monthly low at 1.1740. It remains near the lows, under pressure as the US dollar holds onto gains across the board.

The greenback strengthened during the last hour as US yields rose further. The 10-year yield stands at 1.319%, the highest level since July 16. At the same time, equity prices are mixed. The DXY is up for the second day in a row, up 0.18%, near 93.00.

No key report was released on Monday. Market participants continue to digest Friday’s NFP. On Wednesday, US CPI data is due.

EUR/USD: Next resistance seen at the March low

The outlook is becoming more negative for the euro as EUR/USD holds under 1.1750, the July low. More losses will likely lead to a test of the March lows near 1.1700/05. The mentioned level is the next strong support.

A recovery above 1.1750 could alleviate the bearish pressure but while under 1.1830 (20-day simple moving average) the bias will favor further declines.

Technical levels