• EUR/USD is under heavy selling as the US dollar keeps rallying amid risk-aversion.
  • Recession fears amid deepening Germany’s energy crisis add to EUR’s misery.
  • The sell-off in the Treasury yields fail to lend support to the major.

EUR/USD is falling like a house of cards, having surrendered the 1.0200 mark amid intense buying pressure seen around the US dollar.

The greenback remains the go-to safe-haven asset, as dismal Chinese data-led resurfacing growth fears spook investors’ sentiment.

Risk-off flows continue to dominate even as the American trading gets underway, with the downbeat Empire Manufacturing Survey and NAHB index doing little to deter dollar bulls.

Markets prefer to pile onto the dollars heading into Wednesday’s FOMC minutes showdown, which may reveal Fed policymakers' intent on the size of the future rate rises. The minutes may influence the market’s pricing of the September Fed rate hike, eventually impacting the USD valuations.

Meanwhile, the souring sentiment-driven sell-off in the US Treasury yields fail to lend any support to the spot. The main currency pair also remains undermined by growing recession risks in the euro area. Europe’s economic powerhouse, Germany, could enter into a recession amid the deepening energy crisis, with sinking Rhine waters making shipping along the river harder and adding to the supply-side issue.

Further up the river in Kaub, a noted bottleneck for shipping where the Rhine runs narrow and shallow, the reference level dropped below 40 centimeters, which could probably temper coal counts among key cargo moved on the waterway.

In the last hour, Economy Minister Robert Habeck said that “Germany had to introduce its new levy to help utilities cover the cost of replacing Russian supplies or else its energy market would collapse.” EUR bulls shrugged off Habeck’s comments amid relentless dollar demand.

EUR/USD: Technical levels to watch

EUR/USD

Overview
Today last price 1.0185
Today Daily Change -0.0070
Today Daily Change % -0.68
Today daily open 1.026
 
Trends
Daily SMA20 1.0212
Daily SMA50 1.0329
Daily SMA100 1.0525
Daily SMA200 1.0896
 
Levels
Previous Daily High 1.0328
Previous Daily Low 1.0238
Previous Weekly High 1.0369
Previous Weekly Low 1.0159
Previous Monthly High 1.0486
Previous Monthly Low 0.9952
Daily Fibonacci 38.2% 1.0272
Daily Fibonacci 61.8% 1.0293
Daily Pivot Point S1 1.0223
Daily Pivot Point S2 1.0186
Daily Pivot Point S3 1.0134
Daily Pivot Point R1 1.0313
Daily Pivot Point R2 1.0365
Daily Pivot Point R3 1.0402

 

 

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