The EUR/USD currency pair exhibits a decline in value driven by increased demand for the US dollar. This marks the sixth consecutive session of losses for EUR/USD, as it breaches the crucial support level of 1.0700 for the first time since late March. The decline can be attributed to the continued strengthening of the US dollar and a corrective movement in risk-associated assets.
In the meantime, market participants are expected to closely monitor the political developments in the United States, particularly the discussions among lawmakers regarding the recently announced bipartisan agreement on the US debt ceiling. Based on our analysis, we propose a potential pullback around the 61.8% Fibonacci retracement level from the previous swing, which could sustain the bearish momentum of the EUR/USD pair.