EUR/USD hits fresh lows but remains above 1.0800
- Euro holds a bearish bias against the US dollar, remains above 1.0800.
- Greenback gains across the board as US yields move higher.
The EUR/USD pair dropped further and printed a fresh daily low at 1.0801. It rebounded modestly and is hovering around 1.0810, down 25 pips for the day, on a quiet day in financial markets.
US strength, EUR/CHF nearing 1.0500
A stronger US dollar pushed the EUR/USD to the downside. The DXY is up 0.45% on the day back above 100.00, boosted probably by higher US yields. The 10-year rose to 0.72%, the highest since April 6. Equity prices in Wall Street area mixed and safe-havens yen and gold are weaker. Expectations about negative rates in the US eased after comments from different Fed officials.
Despite falling versus the US dollar, the euro is rising against the pound. EUR/GBP tested the 0.8800 area earlier on Monday. Something worst watching is EUR/CHF as it approaches 1.0500, the level market analysts consider the Swiss National Bank is defending. The cross trades at 1.0514, the lowest in two weeks.
Technical outlook
The EUR/USD holds a short-term negative bias and a break under 1.0800 would expose the next support at 1.0780 that protects last week low at 1.0765. On the upside, the critical resistance is seen at 1.0850. A consolidation above this last one should clear the way to more gains for the euro.
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.
