EUR/USD tumbles to 1.1800 as the US dollar reverses sharply

US dollar soars across the board after US economic data.
EUR/USD drops from near key medium-term resistance to weekly lows.

Matías Salord FXStreet

The EUR/USD fell sharply almost a hundred pips in a few minutes from the 1.1900 area to 1.1799, hitting the lowest level since November 12. It then rebounded modestly and as of writing, it trades at 1.1815, 40 pips lower than Friday’s close.

The move lower took place on the back of a rally of the US dollar across the board following the release of the US Markit PMI preliminary report for November. The index showed an unexpected increase to the highest level in years.

The greenback started to gain momentum, making a dramatic reversal. The DXY stands now near weekly tops, after testing the 92.00 area hours ago. US yields hit fresh highs, helping the dollar.

From a technical perspective, the EUR/USD looks vulnerable and a consolidation under 1.1815 would set the scenario to more weakness. The rejection from levels above 1.1900, the upper limit of a wide range, could accelerate. A daily close under 1.1780 (20-day moving average) could target 1.1700.

Technical levels

EUR/USD

Overview
Today last price	1.1812
Today Daily Change	-0.0046
Today Daily Change %	-0.39
Today daily open	1.1858

Trends
Daily SMA20	1.1789
Daily SMA50	1.1775
Daily SMA100	1.1739
Daily SMA200	1.1378

Levels
Previous Daily High	1.1891
Previous Daily Low	1.185
Previous Weekly High	1.1894
Previous Weekly Low	1.1814
Previous Monthly High	1.1881
Previous Monthly Low	1.164
Daily Fibonacci 38.2%	1.1866
Daily Fibonacci 61.8%	1.1875
Daily Pivot Point S1	1.1842
Daily Pivot Point S2	1.1825
Daily Pivot Point S3	1.1801
Daily Pivot Point R1	1.1883
Daily Pivot Point R2	1.1907
Daily Pivot Point R3	1.1924

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.

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