EUR/USD off lows, still looking vulnerable
|- EUR/USD moves off lows as US dollar momentum amid a retreat on US yields.
- Euro falls for the third consecutive day versus the greenback, heads for the lowest close in three weeks.
The EUR/USD pair bottomed after the release of US data (jobless claims and Philly Fed) at 1.1574, hitting he lowest level in three weeks. From the lows bounced to the upside recovering almost 50 pips. The recovery was capped by 1.1620 and at the time of writing was hovering around 1.1600/05, headed toward the third decline in-a-row.
EUR/USD moves followed the US Dollar Index that hit fresh 1-year highs and then pulled back trimming daily gains. A retreat in US yields weakened the US dollar during the last hours. Earlier today the 1-year yield reach the highest level since June 2008.
The pair rose from the 1.1580 area amid a correction of the US dollar, particularly against European currencies. The strength of the greenback versus commodity currencies remained intact at all times today.
Despite the move off lows, the tone remains bearish for the EUR/SUD and a decline back below 1.1600 could add more pressure, opening the way for a test of the daily low at 1.1575. On the upside, a recovery above 1.1630 could remove the intraday downside bias.
EUR/USD Technical levels
To the downside, support levels might be seen at 1.1575 (daily low), 1.1550 and 1.1510. On the upside, resistance could be located at 1.1625, 1.1655/65 (Jul 18 & 19 high) and 1.1690.
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