EUR/USD steadies around 1.2070 following sharp decline


  • EUR/USD remains on track to close the day deep in the negative territory.
  • Annual CPI inflation in US jumped to 4.2% in April.
  • US Dollar Index gains more than 0.5% on Wednesday.

The EUR/USD pair spent the first half of the day moving sideways in a relatively tight range above 1.2100 on Wednesday but came under strong pressure during the American trading hours. As of writing, the pair, which touched a daily low of 1.2066, was down 0.58% on a daily basis at 1.2075.

USD gathers strength on the back of rising T-bond yields

The highly-anticipated inflation data from the US showed on Wednesday that the Consumer Price Index (CPI) in April jumped to 4.2% on a yearly basis from 2.6% in March. This reading surpassed the market expectation of 3.6%. Moreover, the Core CPI, which excludes volatile food and energy prices, climbed to 3% from 1.6%, compared to analysts' estimate of 2.3%.

The US Treasury bond yields surged higher after this report and provided a boost to the greenback. With the benchmark 10-year US T-bond yield rising more than 3% on the day, the US Dollar Index is up 0.62% at 90.73.

There won't be any macroeconomic data releases featured in the European economic docket on Thursday and the USD's market valuation is likely to continue to drive EUR/USD's action. In the second half of the day, the Producer Price Index (PPI) data from the US will be looked upon for fresh impetus. A similarly strong PPI reading is likely to help the USD continue to outperform its rivals. The US Department of Labor will release its weekly Initial Jobless Claims data as well.

Technical levels to watch for

EUR/USD

Overview
Today last price 1.2078
Today Daily Change -0.0071
Today Daily Change % -0.58
Today daily open 1.2149
 
Trends
Daily SMA20 1.206
Daily SMA50 1.1951
Daily SMA100 1.2047
Daily SMA200 1.1954
 
Levels
Previous Daily High 1.2182
Previous Daily Low 1.2123
Previous Weekly High 1.2172
Previous Weekly Low 1.1986
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2159
Daily Fibonacci 61.8% 1.2145
Daily Pivot Point S1 1.2121
Daily Pivot Point S2 1.2093
Daily Pivot Point S3 1.2062
Daily Pivot Point R1 1.2179
Daily Pivot Point R2 1.221
Daily Pivot Point R3 1.2238

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: ECB’s Lagarde may add to EUR weakness

The American dollar kept rising, heading into the weekly close, with EUR/USD bottoming on Friday at 1.1846 and settling at around 1.1860. On Monday, the focus will be on ECB President Christine Lagarde. EUR/USD maintains its bearish stance despite extreme oversold conditions.

EUR/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Forex MAJORS

Cryptocurrencies

Signatures