EUR/USD prints fresh one-month lows near 1.0850
- US Dollar heads for important weekly gains across the board.
- Higher US yields and weaker sentiment weigh on EUR/USD.
- The pair is having its worst week since September 2022.
The EUR/USD is falling on Friday, the fourth time in the last five days, extending its weekly losses. The pair is hovering near 1.0850, at the lowest level in a month, consolidating a weekly loss of more than 150 pips.
The key driver is a stronger US Dollar across the board. The combination of a cautious tone in equity markets and higher US yields is boosting the Greenback.
The US Dollar Index is up by 0.60% on Friday, trading above 102.50, at the highest level in a month. The Dow Jones is down by 0.31% and the Nasdaq is dropping by 0.53%. The US 10-year stands at 3.44% and the 2-year is approaching 4%.
Short-term outlook
The Euro is having its worst week against the US Dollar since September 2022 so far. The short-term bias for EUR/USD is bearish. “The 1.0800 level is the natural immediate support, en route to 1.0745, the 61.8% retracement of the 2022 yearly decline. A break below the latter should open the door for a long-term USD rally. The 1.0980/1.1000 area will be a tough bone to break now, although if the pair manages to recover above it, 1.1100 is a possible target”, said Valeria Bednarik, Chief Analysts at FXStreet.
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.
