FXStreet (Mumbai) - The EUR/USD pair finally gave away the 1.10 handle and accelerated to the downside in the mid-European trades, failing to benefit from weak European stocks amid broad based US dollar rebound. EUR/USD now capped below 5-DMA The EUR/USD pair trades -0.34% lower at fresh session lows of 1.0977, moving further away from 1.10 barrier. Growing monetary policy divergence between the Fed and ECB, with the former on track to raise rates this year and the ECB hinting last month of further easing in Dec, continues to weigh on the EUR/USD pair. Moreover, Monday’s better than expected US manufacturing PMI reports further fuelled rate hike bets for this year and keeps the shorter-duration US treasury yields underpinned, thus boosting the USD bulls. The 2-year treasury yields now rally over 1.14% to 0.762%. Meanwhile the USD index rises 0.24% to 97.23. Later in the day, markets eagerly await the US factory data and ECB Draghi’s speech due for fresh insights on the EUR/USD pair. EUR/USD Technical Levels The pair broke below 1.10 handle and now keeps falling with immediate support seen at 1.0964 (Oct 30 Low) . Selling pressure will intensify below the last, dragging the pair towards 1.0900 (round number) and below that 1.0840 (Aug lows) could be exposed. To the upside, the next hurdle is located at 1.1000 (5-DMA/ psychological levels). A break above the last, the prices could climb further towards 1.1045/53 (daily R1 + Nov 2 high) and from there to 200-DMA at 1.1090. For more information, read our latest forex news.