EUR/USD tumbles below 1.1800, biggest daily decline since April
|- US dollar outperforms, holds onto significant daily gains.
- EUR/USD: Weekly close at current levels points to consolidation with risk to the downside.
The EUR/USD pair broke under 1.1800 and tumbled to 1.1754, reaching the lowest level in three days. The euro is posting the biggest daily loss versus the US dollar since April, correcting lower from above 1.1900. The greenback is outperforming on Friday, trimming weekly losses.
The greenback was already higher and gained momentum after the NFP and also amid rising tensions between the US and China. In the latest development, the US imposed sanctions on officials in Hong Kong and China, including leader Carrie Lam, over suppression of protests in the territory. Regarding data, the employment report came in better-than-expected, showing a job gain of 1.8 million. The US dollar did not react after the numbers.
The DXY is up by 0.75%, near 93.50, also at three-day highs. The stronger greenback across the board pushed EUR/USD to the downside. On a weekly basis, it is marginally higher, far from the top, suggesting more consolidation ahead.
“Despite holding on to gains, the EUR/USD pair is losing its bullish momentum. The weekly chart shows that the pair is holding above the 23.6% retracement of its July/August rally at 1.1740, the immediate support”, says Valeria Bednarik, Chief Analyst at FXStreet. On the upside, according to her, resistances levels come at 1.1830 and 1.1915. She notes that a break above 1.1915, will expose the 1.2000 threshold.
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