EUR/USD hits four-week lows under 1.2100 as the US dollar strengthens

  • US dollar jumps across the board amid higher yields and a reversal in stocks.
  • EUR/USD about to post lowest weekly close since mid-April.

The EUR/USD dropped further and reached at 1.2099, the lowest level since May 14. So far it is holding above 1.2100 but remains under pressure as the US dollar extends gains across the board.

The DXY jumped to 90.50 after trading under 90.00 hours ago. At the same time, the 10-year yield rebounded from monthly lows to 1.46%. In Wall Street, the Dow Jones is falling by 0.11% and the Nasdaq is flat.

Economic data released on Friday showed an increase above expectation in the University of Michigan Consumer Sentiment Index to 86.4 in June from 82.9. Market participants appear to be positioning ahead of the weekend and next week’s Fed meeting.

Bearish signs?

Form a technical perspective the area around 1.2100is a key support in EUR/USD. A consolidation below would leave the euro vulnerable to more losses. The next support stands at 1.2060 followed by 1.2040. If it manages to defend the 1.2100 area it could rebound. Now 1.2150 is the immediate strong resistance followed by 1.2175.

Short-term technical indicators favor the downside while the lowest close since April in the weekly chart also suggests that an extension of the bearish correction is on the cards, particular if it drops under 1.2100.

Technical levels


Today last price 1.2103
Today Daily Change -0.0078
Today Daily Change % -0.64
Today daily open 1.2181
Daily SMA20 1.2186
Daily SMA50 1.2075
Daily SMA100 1.2043
Daily SMA200 1.1989
Previous Daily High 1.2218
Previous Daily Low 1.2171
Previous Weekly High 1.2254
Previous Weekly Low 1.2104
Previous Monthly High 1.2266
Previous Monthly Low 1.1986
Daily Fibonacci 38.2% 1.22
Daily Fibonacci 61.8% 1.2189
Daily Pivot Point S1 1.2162
Daily Pivot Point S2 1.2143
Daily Pivot Point S3 1.2115
Daily Pivot Point R1 1.2209
Daily Pivot Point R2 1.2237
Daily Pivot Point R3 1.2256



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