EUR/USD dips further into the red, 1.2200 looms closer

• Spot trades in fresh lows in the 1.2220/10 band.
• USD keeps the bid tone near 90.50.
• EUR/GBP drop also weighs on the pair.

The buying pressure around the buck is prompting EUR/USD to slip back to the vicinity of the 1.2200 key support, or fresh multi-day lows.

EUR/USD now looks to 1.2165

The pair’s bearish tone remains well and sound so far this week, retreating on a weekly basis for the first time after a 6-week positive streak.

Increasing demand for the greenback keeps spot under heightened downside pressure today and at the same time is opening the door for a potential visit to the key support area around 1.2160, where converge a Fibo retracement and January 18 low.

Collaborating with the downbeat sentiment, the pair met extra selling pressure via a significant drop in EUR/GBP after the BoE delivered an unexpected hawkish tone at its meeting today, boosting the demand for the Sterling.

EUR/USD levels to watch

At the moment, the pair is losing 0.05% at 1.2256 facing the immediate support at 1.2212 (low Feb.8) followed by 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2165 (low Jan.18). On the other hand, a breakout of 1.2316 (21-day sma) would target 1.2388 (10-day sma) en route to 1.2524 (high Feb.1).