- EUR/USD turned south during the American trading hours.
- US Dollar Index extends recovery to 92.50 area.
- Rising US Treasury bond yields provide a boost to USD on Tuesday.
The EUR/USD pair spent the first half of the day moving sideways a little below 1.1900 but lost its traction during the American trading hours. As of writing, the pair was down 0.18% on a daily basis at 1.1847.
DXY continues to erase Friday's losses
The renewed USD strength on Tuesday seems to be forcing EUR/USD pair to edge lower. The US Dollar Index, which suffered heavy losses on disappointing August jobs report on Friday, extended its rebound and was last seen rising 0.3% at 92.84.
In the absence of high-impact macroeconomic data releases, the sharp increase witnessed in the 10-year US Treasury bond yield seems to be helping the greenback find demand.
Earlier in the day, the data from the euro area showed that the GDP grew by 2.2% on a quarterly basis in the second quarter. Although this reading was much better than the market expectation for a contraction of 0.6%, the shared currency struggled to capitalize on it. On a negative note, the ZEW Survey - Economic Sentiment for the eurozone declined to 31.1 in September from 42.7 in August and fell short of analysts' estimate of 52.2.
On Thursday, the European Central Bank (ECB) will announce its policy decisions. Previewing the ECB event's potential impact on EUR/USD, "we expect the ECB to announce a reduced pace of Q4 PEPP purchases, partly reflecting easier financial conditions," noted TD Securities analysts. “This backdrop should reinforce the recent bottom in the EUR/USD, indicating that we're likely to revisit 1.20 rather than 1.15 in the months ahead.”
EUR/USD set to revisit the 1.20 level – TDS.
Technical levels to watch for
|Today last price||1.1846|
|Today Daily Change||-0.0025|
|Today Daily Change %||-0.21|
|Today daily open||1.1871|
|Previous Daily High||1.1886|
|Previous Daily Low||1.1856|
|Previous Weekly High||1.1909|
|Previous Weekly Low||1.1783|
|Previous Monthly High||1.19|
|Previous Monthly Low||1.1664|
|Daily Fibonacci 38.2%||1.1867|
|Daily Fibonacci 61.8%||1.1875|
|Daily Pivot Point S1||1.1856|
|Daily Pivot Point S2||1.184|
|Daily Pivot Point S3||1.1825|
|Daily Pivot Point R1||1.1886|
|Daily Pivot Point R2||1.1902|
|Daily Pivot Point R3||1.1917|
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