Open trading account 
EUR/USD extended bearish slide through the mid-European session and dropped to 2-1/2 week lows.Optimism over major US tax reform plan and passage of the funding bill to avert a government shutdown continued underpinning the US Dollar and has been one of the key factors weighing on the major.Incoming US labor market data, including the latest ADP report on private sector employment and initial jobless claims remained supportive for an eventual Fed rate hike move at next week's meeting.
A good pickup in US Treasury bond yields additional boost to the USD and further collaborated to the pair's slide below mid-1.1700s, marking its lowest level since Nov 22.Today's downfall could also be attributed to some fresh technical selling, especially after yesterday's decisive close below 100-day SMA and a short-term descending trend-channel. A subsequent break below 50-day SMA support, near the 1.1760-55 region, added to the bearish bias and aggravated downward pressure on Friday. The selling interest seems to have receded, at least for the time being, as investors now look forward to the keenly watched US monthly jobs data (NFP) for fresh impetus. The bearish trajectory now seems more likely to get extended towards the 1.1700 handle, below which the pair is likely to head towards testing 1.1665-60 horizontal support.
A good pickup in US Treasury bond yields additional boost to the USD and further collaborated to the pair's slide below mid-1.1700s, marking its lowest level since Nov 22.Today's downfall could also be attributed to some fresh technical selling, especially after yesterday's decisive close below 100-day SMA and a short-term descending trend-channel. A subsequent break below 50-day SMA support, near the 1.1760-55 region, added to the bearish bias and aggravated downward pressure on Friday. The selling interest seems to have receded, at least for the time being, as investors now look forward to the keenly watched US monthly jobs data (NFP) for fresh impetus. The bearish trajectory now seems more likely to get extended towards the 1.1700 handle, below which the pair is likely to head towards testing 1.1665-60 horizontal support.
