EUR/USD breaks through 1.1000 psychological level

Extending its Tuesday's bearish slide, the EUR/USD pair broke below 1.1000 psychological support and dropped to a fresh monthly low level.

The US Dollar continues to attract fresh buying interest as recent upbeat economic releases now seems to fuel expectations of an imminent Fed rate-hike later during this year with CME Group's Fed Fund futures pointing to 40% probability of such action in December.

Following a spectacular June NFP print, last week's strong growth in monthly retail sales and industrial production, followed by Tuesday's upbeat housing market data, clearly suggests the underlying strength of the US economic recovery.

With an empty economic docket, bullish sentiment surrounding the greenback now seems to hinder any swift recovery for the EUR/USD major. Meanwhile, markets will remain focused on Thursday’s ECB meeting in order to determine near-term direction for the pair. 

Technical levels to watch

Should the pair sustain its weakness below 1.1000 psychological mark, which for the time-being seems more likely, its is likely to drop immediately towards 1.0950 intermediate support ahead of retesting Brexit-led swing lows support near 1.0900 handle. On the flip side, any attempt of recovery now seems to confront immediate resistance near 1.1030. Above this immediate resistance, the pair could extend the recovery but any further recovery now seems to be capped at the very important 200-day SMA strong resistance near 1.1090-1.1100 region.