EUR/USD hits fresh six-day lows, holds above 1.0900
|- EUR/USD spiked lower to 1.0900 and rose back to the recent range.
- DXY consolidates gains above 99.50, Wall Street indexes down 4%.
The EUR/USD fell to 1.0900, hitting the lowest level since last Thursday. Afterwards, it rebounded rising back to the 1.0945/1.0915 range. Near the end of the session, it is testing the lower limit of the range, holding a bearish bias.
The euro is about to post the third daily decline in a row versus the US dollar as it continues to retreat from the two-week high it reached on Friday near 1.1150. A stronger US dollar was the key driver on Wednesday of the 100-pips decline.
The greenback benefited from risk aversion. The DXY rose to 99.70 and it is up 0.65%. In Wall Street, the Dow Jones is falling 4.03% and the Nasdaq 4.15%. Volatility remains at extreme levels across financial markets.
Data form the US was ignored by market participants. The ADP employment report and March manufacturing numbers looked like old data. Market participants focus on the very short-term and the outlook. On Thursday, jobless claims data is due. Last week, initial claims jumped from near 220K to more than three million. A bigger number is expected. The official March employment report is due on Friday, but considering the data takes into account what happened until mid-March, it could be a non-event.
Technical levels
The EUR/USD continues to move with a bearish bias. Below 1.0915 it will likely rechallenge the 1.0900 area. A break lower would target 1.0880; the next support comes at 1.0850. On the upside, the short-term resistance stands at 1.0945/50 (upper limit of the current range) followed by 1.1000/10 (horizontal level and downtrend line from March 27 high).
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