EUR/USD tumbles under 1.1050, to lowest in three weeks as US dollar soars
|- Stronger US dollar, particularly against majors, sends EUR/USD sharply lower.
- US yields jump boosted the Greenback amid optimism on US/China deal.
The EUR/USD pair accelerated to the downside and now has fallen more than fifty pips from the daily high. As of writing trades at 1.1035, the lowest level since October 16.
USD rules, Wall Street at record highs, yields up
The move lower in EUR/USD is being driven by a rally of the US dollar, particularly against majors. Positive expectations about the outcome of the phase 1 deal between the US and China contributed to improving risk sentiment. US yields are rising sharply, with the 10-year at 1.914%, the highest level since early August.
In Wall Street, equity prices are higher with indexes at record highs. The Dow Jones gains 0.91% and the Nasdaq 0.75%. The DXY is up 0.20%, back above 98.00, at three-week highs. At the same time, gold drops 1.25%
Double top and target at 1.0975?
The EUR/USD shows a double top formation around 1.1175 and now it is falling below the neckline of the formation seen around 1.1050/70. So a consolidation below that area would sign more losses ahead and a potential target at 1.0975. Before support levels might be seen at 1.1025 and 1.1000. A recovery above 1.1080 would negate the current bearish bias.
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