EUR/USD bounces off fresh 2018 lows around 1.1820
- The pair recorded a new 2018 lows at 1.1820, just to rebound afterwards.
- The greenback clinches fresh YTD tops on the back of higher US yields.
- US Retail Sales came in below initial estimates in April.
The acceleration of the upside in the buck dragged EUR/USD to clinch fresh YTD lows around 1.1820, albeit gaining some attention afterwards.
EUR/USD weaker despite downbeat US data
The demand for the greenback has recovered the smile during the first half of the week, prompting the US Dollar Index (DXY) to resume the upside and record fresh 2018 tops near 93.50.
The continuation of the solid pace of the buck forced the pair to retreat and test the 1.1820 area, or fresh YTD lows despite the key US Retail Sales came in below expectations in April, expanding at a monthly 0.3%.
The down move in spot has been in tandem with a rapid climb in yields of the US 10-year note beyond 3.06%, levels last traded in 2011.
Adding to EUR negative momentum, German data came in mixed, Industrial Production in the euro area expanded below consensus and advanced Q1 GDP figures in the bloc failed to surprise to the upside.
EUR/USD levels to watch
At the moment, the pair is down 0.63% at 1.1852 facing the immediate support at 1.1820 (2018 low May 15) seconded by 1.1768 (78.6% Fibo of November-February up move) and finally 1.1718 (monthly low Dec.12 2017). On the upside, a breakout of 1.1996 (high May 14) would target 1.2021 (200-day sma) en route to 1.2048 (38.2% Fibo of 1.2413-1.1823).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
