Breaking: EUR/USD hits a new 13-month high, approaches 1.1100

EUR/USD rallied to a fresh multi-month high, nearby 1.1100.
Fears around another round of a banking crisis in the US weighed on the odds for a Fed 25 bps rate hike.

FXStreet Team FXStreet

The EUR/USD soars sharply above the past yearly high of 1.1076 and hits a 13-month high at around 1.1095. Concerns about the health of regional banks in the United States (US) triggered flows outside the US Dollar (USD), as shown by the US Dollar Index (DXY), collapsing 0.75%. At the time of writing, the EUR/USD is trading at 1.1067.

US Treasury bond yields, and the risks of a banking crisis in the US, the drivers of EUR/USD’s jump

As the North American session began, the EUR/USD achieved a daily high shy of the 1.1100 figure, as First Republic Bank, which took over Silicon Valley Bank (SVB), witnessed its shares plunge 49% on Tuesday, as deposits shrank. That sparked fears of a possible contagion and a potential pause on the US Federal Reserve (Fed) tightening cycle. Therefore, the greenback fell.

US Treasury bond yield dropping is one reason for the EUR/USD’s rise. Additionally, expectations for a US Federal Reserve 25 bps rate hike diminished to 75.3%, compared to 1 week 83.3%.

EUR/USD Market Reaction

The EUR/USD jumped from around the R1 daily pivot at 1.1040 and accelerated its uptrend towards the 1.1095 multi-month high, some pips of reaching the R1 daily pivot. Though it has retraced some 30 pips from the daily high, buyers are still in charge of the uptrend, and the 1.1100 figure is still in sight.

EUR/USD Technical Levels

EUR/USD

Overview
Today last price	1.1073
Today Daily Change	0.0100
Today Daily Change %	0.91
Today daily open	1.0973

Trends
Daily SMA20	1.094
Daily SMA50	1.0778
Daily SMA100	1.0747
Daily SMA200	1.0401

Levels
Previous Daily High	1.1067
Previous Daily Low	1.0964
Previous Weekly High	1.1
Previous Weekly Low	1.0909
Previous Monthly High	1.093
Previous Monthly Low	1.0516
Daily Fibonacci 38.2%	1.1003
Daily Fibonacci 61.8%	1.1028
Daily Pivot Point S1	1.0936
Daily Pivot Point S2	1.0898
Daily Pivot Point S3	1.0832
Daily Pivot Point R1	1.1039
Daily Pivot Point R2	1.1104
Daily Pivot Point R3	1.1142

Author

FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

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