EUR/USD peeps above 1.19 on persistent USD sell-off

EUR/USD prints 25-month high above 1.19 as USD selling persists.
Growth concerns and fiscal impasse weigh over the greenback.
EUR/USD's daily RSI shows overbought conditions, may induce some profit-taking.

Omkar Godbole FXStreet Contributor

Dour US data and fiscal impasse in Washington continues to weigh over the US dollar and push EUR/USD higher.

The pair is trading at 1.1886 at press time, having put in a 25-month high of 1.1905 a few minutes ago.

Greenback on the offer

Bears continue to tighten their grip around the US dollar with the economic data raising concerns regarding the future course of the world’s largest economy.

The official data released on Thursday showed more than 1.4 million workers in the US applied for state unemployment benefits last week. The second consecutive rise in jobless claims validated the Federal Reserve’s warning on Wednesday that the recovery was slowing due to the resurgence of coronavirus cases.

Another data revealed that the US economy contracted by a record 32.9% in the second quarter.

If that’s not enough, the Congress remains deadlocked on a new fiscal support bill even though an enhanced federal jobless benefit is set to expire on Friday.

These factors could continue to weigh over the US dollar during the day ahead. Investors, however, should note that the pair now looks extremely overbought and bond yields in the Eurozone are also falling on growth concerns. As such, a sudden pullback cannot be ruled out.

On the data front, the focus would be on the German Retail Sales (Jun), Eurozone’s preliminary second-quarter GDP data, and Consumer Price Index for July, Across the pond, the US Core Personal Consumption Expenditure.

Technical levels

EUR/USD

Overview
Today last price	1.1886
Today Daily Change	0.0039
Today Daily Change %	0.33
Today daily open	1.1847

Trends
Daily SMA20	1.1481
Daily SMA50	1.1315
Daily SMA100	1.1102
Daily SMA200	1.1085

Levels
Previous Daily High	1.1848
Previous Daily Low	1.1732
Previous Weekly High	1.1658
Previous Weekly Low	1.1402
Previous Monthly High	1.1422
Previous Monthly Low	1.1097
Daily Fibonacci 38.2%	1.1804
Daily Fibonacci 61.8%	1.1777
Daily Pivot Point S1	1.177
Daily Pivot Point S2	1.1693
Daily Pivot Point S3	1.1654
Daily Pivot Point R1	1.1886
Daily Pivot Point R2	1.1926
Daily Pivot Point R3	1.2003

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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