EUR/USD remains under pressure, at three-month lows near 1.1750

• US dollar remains strong across the board, even as markets recover.
• EUR/USD heads for the lowest daily close since early April.

The EUR/USD pair rebounded to 1.1780; however it quickly pulled back to the 1.1750 area. The euro bottomed hours ago at 1.1754, the fresh three-month lows, and it remains under pressure, even as Wall Street recovers after Monday’s slide.

The Dow Jones is rising by 1.60%, and the Nasdaq climbs 1.30%. The improvement in risk sentiment alleviated the bullish tone of the US dollar but, so far, did not trigger any sharp corrections.

The greenback is even higher versus the Japanese yen on Tuesday, boosted by a rebound in US yields. The US 10-year yield rose from monthly lows near 1.12% back above 1.20%. The sell-off in bonds is helping the dollar.

Market attention continues to be on the stock and bond market. For the EUR/USD a key event will be on Thursday with the European Central Bank meeting. The first one since the new strategy so some changes to the language are expected.

The EUR/USD goes into the meeting trading at the lowest level since April. Currently is testing the 1.1760/70 support band. A consolidation below would open the doors to more losses.

Technical levels