EUR/USD extends slide toward 1.1800 as USD accelerates to the upside
- Dollar jumps across the board, Dow Jones falls more than 1% and US yields tumble.
- EUR/USD prints fresh daily lows, remains above 1.1800.
The EUR/USD pair printed a fresh two-day low at 1.1815 and rebounded modestly. So far it has been unable to move away from the 1.1830 area; it remains under pressure on the back of a stronger US dollar.
The greenback rose sharply versus most of the currencies during the last hours, amid a decline in equity prices in Wall Street and despite lower US yields. The best performer has been the Japanese yen; boosted by risk aversion and the move in the bond market.
On the first regular day of the week, after yesterday’s holiday in the US, bonds are rising sharply. The 10-year yield dropped to 1.35%, the lowest since February. The Dow Jones is losing almost 1%. Despite lower yields and weaker-than-expected US data, the greenback is holding onto most of its gains.
The bias in EUR/USD continues to point to the downside. A consolidation below 1.1820 would expose the 1.1800 support. Below the next level stands at 1.1760. A close around current levels would be the lowest since early April. A recovery above 1.1860 would alleviate the pressure.
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.
