The EUR/USD dropped to its lowest level in a week below 1.1840 last night, largely due to higher US 10-year bond yields at 1.21%.
The closest support level, should the EUR/USD finally break away from the 1.1840 mark, would be 1.1805.
Next, the Fiber could try to test the intermediate support of 1.1750 and, in case of break-out, sink even up to 1.1730.
The last support threshold would be represented by the relative minimum of 1.1680.
To enable a bullish rally, it would instead be necessary, first, to overcome the level of 1.19 which is still very close to the 200-day and 50-day averages.
Before this value, however, the Fiber will have to face the first resistance level of 1.1880.
In this regard, looking at the latest movements of the EUR/USD, it is not excluded that the achievement of this last value could coincide with a new consolidation phase below the level of 1.19. In fact, approaching this target in the short term could lead to a new consolidation phase.
Indeed, approaching this short-term target seems increasingly difficult, considering that even the positive data coming from the Eurozone last week and this week are not convincing investors, who are still fearful of increased contagions from Delta variant.
As for the main market movers, watch out in the second half of the week for data on unemployment claims and especially the US trade balance, which will certainly affect the EUR/USD.