EUR/USD has fallen to its lowest point in almost 20 years. Eren Sengezer of FXStreet says that if 1.02 support fails, there could be more losses.

“The minutes of the US Federal Reserve’s monetary policy meeting in June will be made public. The CME Group FedWatch Tool shows that the markets think there is an 88 percent chance that the Fed will raise rates by 75 basis points in July. If the Fed’s report makes that chance less likely, EUR/USD could make a comeback if the dollar keeps getting weaker,” he wrote.

Aside from that, the most important thing will be the US ISM Services PMI data. Most people in the market think that the economic data will drop from 55.9 to 54.5.

“On the upside, 1.0260 (a static level and former support) is the first point of resistance before 1.0300,” Sengezer added. Only a daily close above that level could stop sellers and make a long rebound toward 1.0370 possible.

The next line of defense is the psychological level 1.0200. If this level fails, the next target for bears could be 1.0130, which is a static level from November 2002 and was once resistance.

Conclusion

After a short-lived attempt to go up at the start of the European session, EUR/USD has turned south and dropped below 1.0200 for the first time in nearly 20 years. Even though the market is in a good mood, the shared currency is having trouble finding buyers as attention shifts to US data and the FOMC Minutes.