Ella 
The EUR/USD pair faced selling pressure for a second straight day on Wednesday, extending the previous day’s pullback from 100-day simple moving average (SMA) resistance near 1.0865. However, the EUR/USD Asian market barely stayed above the 1.0800 mark, but it seems likely to fall further amid follow-up buying of the US dollar.
The U.S. dollar index (DXY), which tracks the greenback against a basket of currencies, rebounded to multi-week highs hit on Friday and continues to be supported by optimistic expectations for the U.S. economy. U.S. durable goods orders data released on Tuesday was slightly better than expected, adding to optimism that could force the Federal Reserve to keep interest rates higher for longer while inflation remains subdued. This, combined with a softening risk tone, has supported the safe-haven dollar and put some pressure on EUR/USD.
On the other hand, rising bets on an interest rate cut by the European Central Bank (ECB) in June also weighed on EUR/USD. In fact, ECB policymaker Madis Muller said on Tuesday that we are getting closer to the point when the central bank will start cutting interest rates. In addition, ECB official Giannis Stomaras commented that a rate cut in June has become a consensus. This is seen as another factor in the strength of EUR/USD and supports the extension of EUR/USD’s more than two weeks of losses.
