EUR/USD drops further, challenges 1.2300

EUR weakness accelerates and drags the pair to lows near 1.2300.
USD firmer, tests and surpasses the critical 90.00 mark.
Chicago Fed C.Evans due to speak later in the NA session.

Pablo Piovano FXStreet

The single currency is seeing its downside intensified at the end of the week and is dragging EUR/USD to test the key support in the 1.2300 neighbourhood.

EUR/USD lower on USD-buying

Spot has accelerated the weekly leg lower and is now navigating multi-day lows in the vicinity of the ley support at 1.2300 the figure, always amidst a solid performance of the greenback.

In fact, the buck clinched levels above the psychological 90.00 milestone when gauged by the US Dollar Index (DXY) against the backdrop of rising yields of the key US 10-year note, which are trading above the 2.90% area for the first time since mid-March.

EUR remains on the downside amidst prevailing risk-on sentiment and somewhat alleviated upside pressure following speculations of a dovish ECB next week and disappointing readings from this week’s docket in the euro area.

EUR/USD levels to watch

At the moment, the pair is losing 0.31% at 1.2308 facing immediate contention at 1.2300 (low Apr.12) seconded by 1.2214 (low Apr.6) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2414 (high Apr.17) would target 1.2478 (high Mar.27) en route to 1.2538 (high Jan.25).

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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.

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