The lower lows continue

EUR/USD is down for the second consecutive day and is trading at the lowest levels of the month. The next level to watch is the May 30 low of 1.1110, which is 55 pips away.

The latest leg is more about strength in the US dollar than weakness in the euro. Over the past week, it's in the middle of the G10 pack.

That said, it's not a great look but the late-June low is critical. That has been support since Macron's election win and if it breaks, that would open up a slide that could hit pre-election levels near 1.0850.

I don't think that's going to happen because there is a huge appetite to buy euro dips but it can't be ruled out, especially with yield differentials in Europe being what they are.