EUR/USD flirting with lows, below mid-1.0900s

The greenback continued gaining traction through early NA session, dragging the EUR/USD pair to fresh session low near 1.0940-30 region.

The pair failed to hold on early gains beyond the key 1.1000 psychological mark, led by Emmanuel Macron’s win the second round of the French Presidential election, and came under some fresh selling pressure as traders seemed inclined to take some profits off the table, especially after the pair's recent up-surge of over 400-pips over the past 3-weeks.

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Moreover, increasing odds for an eventual Fed rate-hike action in June, in absence of any big disappointment from Friday's US monthly jobs report, further underpinned the greenback demand and aggravated the profit-taking slide surrounding the major. 

Meanwhile, hawkish comments by Cleveland Federal Reserve President Loretta Mester, noting that the central bank's goals were largely met and interest rate hikes were on track, were largely negated by St. Louis Fed President James Bullard comments that the rise in demand for safe assets remains strong and there was no need to rush rate hikes.

The comments, however, did little to stall the greenback buying interest, with the key US Dollar Index now placed at session tops near 98.85 region and supporting the strong offered tone surrounding the major. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "given that the price is unable to regain ground beyond its 20 SMA, whilst technical indicators extended their declines within positive territory, now challenging their mid-lines. Should the support give up, the pair can extend its downward corrective move down to 1.0850, while the price needs now to regain the 1.0980 region to revert the short term negative tone."