EUR/USD hits fresh eight week lows near 1.1660 on US dollar strength
|- US dollar strengthens further as Wall Street turns negative.
- EUR/USD extends slide, heads for lower close in two months.
The EUR/USD is falling for the fourth consecutive day on Wednesday and recently dropped to 1.1662, the lowest level since July 27. It remains near the lows, under pressure as the US dollar strengthens and risk sentiment deteriorates.
The US dollar, measured by the DXY jumped to 94.30, reaching the highest level since July. It gained momentum after the beginning of the American session despite US economic data and Powell’s testimony. Many Fed’s officials spoke on Wednesday highlighting the need for more fiscal stimulus in line with Powell’s comments.
The deterioration in risk sentiment is again boosting the greenback. The Dow Jones is falling 0.25% after being unable to hold into positive territory while the Nasdaq drops more than 1%.
The euro is about to post the lowest close in two months versus the US dollar and is also trading lower against the pound. European PMIs failed to lift the common currency.
Technical levels
The daily chart in EUR/USD shows the 20-day simple moving average turning south and indicators favouring the downside. Support levels might be seen at 1.1600, followed by 1.1570 and then comes the strong 1.1500 barrier. On the upside, the immediate resistance might lie at 1.1720 (American session high), 1.1750 and then 1.1825.
More levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.