EUR/USD breaks below 1.0600 for the first time in six-months
- Euro hits fresh daily lows across the board.
- ECB Lagarde speaks at the European Parliament
- EUR/USD falls for the fifth consecutive day.
The EUR/USD dropped below 1.0600 for the first time since March. The pair bottomed at 1.0581, and remains under pressure on the back of a stronger US Dollar.
Greenback remains firm
The US Dollar is up across the board on Monday. The US Dollar Index (DXY) is trading slightly below 106.00, at the highest level since November of last year. The US 10-year Treasury yields reached a new high at 4.52%. Stock in Wall Street opened mixed.
European Central Bank (ECB) President Christine Lagarde is speaking at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament. She mentioned that the labor market is “finally adjusting”.
Regarding economic data, earlier on Monday, the German IFO survey slightly exceeded market consensus. The Current Assessment Index dropped from 89 to 88.7, while the Expectation Index rose from 82.6 to 82.9. In the US, the Chicago Fed National Activity Index declined to -0.16 in August from 0.07. The key reports of the week will be the inflation figures from the Eurozone and the US.
Levels to watch
The EUR/USD is holding below 1.0600, under pressure. The next support level is seen around the 1.0580 area, followed by 1.0550.
Despite falling for the fifth consecutive day, no signs of stabilization are observed. In the short term, a recovery above 1.0645 would improve the outlook for the Euro.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
