EUR/USD is hovering below 1.1750 amid a cautious market mood. Delta covid variant spread and China's curbs remain a concern. The dollar retreats with the Treasury yields ahead of US Prelim Consumer Sentiment data.
From current levels, any meaningful slide might continue to find decent support near the 1.1700 mark. A convincing breakout below will reaffirm the bearish outlook and prompt some aggressive technical selling. The pair might then accelerate the fall towards intermediate support near the 1.1665-60 region before eventually dropping to November 2020 lows around the 1.1600 round figure.
On the flip side, bulls might wait for a move beyond the overnight swing high around the 1.1755 region, before placing fresh bets. Any subsequent positive move might still be seen as a selling opportunity and remain capped near the 1.1800 mark. This is followed by resistance near the 1.1830-35 region, which if cleared decisively might trigger a short-covering move. The next relevant hurdle is pegged near the 1.1880 supply zone ahead of the 1.1900 mark. A sustained strength beyond might negate the bearish bias and allow the pair to aim back to reclaim the key 1.2000 psychological mark.
