EUR/USD challenges lows near 1.1270

EUR/USD is suffering the renewed demand for the US dollar and is currently approaching the area of daily lows near 1.1270.

EUR/USD offered, back from 1.1370

Spot is retreating for the second session in a row so far, shedding nearly a cent since last week’s tops in the boundaries of 1.1370 in response to a solid pick up in the demand for the US dollar.

Nothing expected in the data space today. However, the meeting between Merkel, Hollande and Renzi in Italy could shed some light about a potential game plan in Europe following the recent decision by the UK to leave the union.

EUR/USD levels to watch

The pair is now losing 0.39% at 1.1279 and a breach of 1.1263 (50% Fibo of the May-June down move) would target 1.1246 (2014-2016 support line) en route to 1.1188 (20-day sma). On the other hand, the next hurdle aligns at 1.1367 (high Aug.18) followed by 1.1434 (high Jun.24) and finally 1.1466 (high Apr.12).