EUR/USD drops from 13-day highs to fresh daily lows near 1.0600

EUR/USD makes a run to weekly highs and retreats.
Pair now closer to the daily low as US yields rise.
Equity markets turn negative, oil sinks.

Matías Salord FXStreet

The EUR/USD failed to break the current range despite hitting the highest level in 13 days. The pair peaked at 1.0675 and then pulled back. It is trading at daily lows under 1.0620.

The short-lived run to 1.0675 coincided with the US dollar bottoming across the board. Afterwards, boosted by a rebound in US yields. The US 10-year yield rose from 3.82% to 3.87%, a fresh monthly high. Equity prices in the US turned negative adding some support to the greenback. The US Dollar reversed sharply during the last hour. The DXY rose from 6-day lows at 103.84 to 104.42, the strongest since Friday. Crude oil prices are falling by more than 2%.

Economic data released in the US showed mixed numbers. Pending Home Sales in November dropped unexpectedly by 4% against expectations of a 0.6% increase; compared to a year ago sales are down by 37.8%. The Richmond Fed Manufacturing Index jumped in December to 1 from -9, surpassing the market consensus of -4.

Levels to watch

The EUR/USD was again rejected from the 1.0660/70 area and it reversed. Now it is moving toward 1.0600. A break lower would expose the lower limit of the current range at 1.0580. A consolidation below would point to a deeper correction, with the next support seen at 1.0530.

Technical levels

EUR/USD

Overview
Today last price	1.0652
Today Daily Change	0.0011
Today Daily Change %	0.10
Today daily open	1.0641

Trends
Daily SMA20	1.0569
Daily SMA50	1.0296
Daily SMA100	1.0115
Daily SMA200	1.033

Levels
Previous Daily High	1.067
Previous Daily Low	1.0612
Previous Weekly High	1.0659
Previous Weekly Low	1.0573
Previous Monthly High	1.0497
Previous Monthly Low	0.973
Daily Fibonacci 38.2%	1.0648
Daily Fibonacci 61.8%	1.0634
Daily Pivot Point S1	1.0612
Daily Pivot Point S2	1.0583
Daily Pivot Point S3	1.0554
Daily Pivot Point R1	1.067
Daily Pivot Point R2	1.0699
Daily Pivot Point R3	1.0728

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.

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