EUR/USD tumbles amid stronger Dollar, drops below 1.1000


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  • US Dollar strengthens on Friday after US data and Fed talk. 
  • EUR/USD drops 80 pips from top, but holds firm to weekly gains. 

The EUR/USD is losing ground on Friday as the US Dollar recovers a part of recent losses. The pair reached a fresh daily low at 1.0987 moving away from the one-year lows it hit on European hours at 1.1075. 

The US Dollar Index (DXY) is up by 0.50% on Friday, hovering around 101.50 following mixed US economic data. Comments from Federal Reserve officials and higher US yields helped the Dollar. 

Fed Governor Christopher Waller said that the central bank has not made much progress on the inflation goal and argued rates need to rise further. In an interview with CNBC, Chicago Fed President Austan Goolsbee mentioned that “a mild recession is definitively on the table as a possibility.”

Economic data came in mixed, with lower-than-expected numbers from Retail Sales, but Industrial Production and University of Michigan’s Consumer Sentiment rose more than expected. 

Following data and comments, US yields jumped. The 2-year Treasury yield rose from under 4% to 4.10% and the 10-year from 3.45% to 3.52%. Eurozone bond yields are also rising but at a slower pace. 

Despite Friday’s reversal, EUR/USD is still on its way to the highest weekly close in a year. It is holding up, however, the retreat from the highs raises doubts about more gains for the next session. 

Price is hovering around daily lows at 1.0990. The next support area is seen at 1.0970 followed by 1.0935. On the upside, 1.1040 could become the immediate resistance. 

Technical levels 

EUR/USD

Overview
Today last price 1.0989
Today Daily Change -0.0058
Today Daily Change % -0.53
Today daily open 1.1047
 
Trends
Daily SMA20 1.0861
Daily SMA50 1.0739
Daily SMA100 1.0704
Daily SMA200 1.0366
 
Levels
Previous Daily High 1.1068
Previous Daily Low 1.0977
Previous Weekly High 1.0973
Previous Weekly Low 1.0788
Previous Monthly High 1.093
Previous Monthly Low 1.0516
Daily Fibonacci 38.2% 1.1033
Daily Fibonacci 61.8% 1.1011
Daily Pivot Point S1 1.0993
Daily Pivot Point S2 1.0939
Daily Pivot Point S3 1.0902
Daily Pivot Point R1 1.1084
Daily Pivot Point R2 1.1121
Daily Pivot Point R3 1.1175

 

 

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