- Euro heads for lowest close against US Dollar since May 2017.
- Recovery from 1.0883 capped by 1.0915 as US Dollar remains strong across the board.
The EUR/USD pair dropped to 1.0883 reaching a fresh two-year low. Then it rebounded rising toward the 1.0915 area. Now it is hovering around 1.0900, holding a bearish tone as the US Dollar strengthens.
If the Greenback remains strong a test of daily lows seems likely. A consolidation below 1.0900 would probably add more negative pressure to the pair. The next medium-term support could be seen around the 1.0850 zone. On the flip side, a recovery on top of 1.0930 (20-hour moving average) would remove the negative tone.
The key driver continues to be the US Dollar. US data today came in mixed and Wall Street is posting gains. US yields remain steady offering no boost to the currency. The DXY is up 0.25%, above 99.30 on it way to the highest close in two years.
Tomorrow, Eurozone inflation data and the final PMIs are due. “Headline euro-zone inflation is set to miss expectations after country-level data disappointed while Core CPI may surprise – but not necessarily to the upside. EUR/USD may rise on a "buy the rumor, sell the fact" reaction, but any advance will likely be short-lived given the gloomy economic situation in the euro-zone”, explained Yohay Elam, analyst at FXStreet.
Technical levels
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