EUR/USD drops to lowest level in six days under 1.0580
- US Dollar gains momentum during the American session on risk aversion.
- US yields hit fresh highs while equity prices turn negative.
- EUR/USD flat for day, slightly below 1.0600.
The EUR/USD is trading flat for the day, hovering under 1.0600. During the American session, the pair fell to 1.0575, reaching the lowest level since December 13.
The pair holds a bearish intraday tone that could change with a rebound above 1.0610. The key resistance then comes at 1.0660. On the flip, the 1.0575/80 is the critical zone: a break lower would waeken the euro further.
While German yields moved off highs during the Aercianesssion, Treasury yields printed fresh highs. As of writing, the US 10-year bond yield stands at 3.58% the highest in six days.
In Wall Street, the Dow Jones is falling by 0.13%, adding to last week's losses. The Nasdaq tumbles by more than 1%. Concerns about the global economic outlook as central banks continue to raise interest rates, weighs on market sentiment.
The negative tone favors the US Dollar which erased most of its daily losses. The DXY is down by just 0.05%, far from the low, moving toward 104.80.
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.
