- EUR/USD retreats further after being unable to break 1.1420 and eyes 1.1300.
- US dollar and yen rise across the board as Wall Street tumbles.
The EUR/USD pair dropped to tests Monday’s low at 1.1317 and rebounded. It trades at 1.1340 but remains under pressure amid a rally of the US dollar.
Earlier today, the pair rose to the 1.1420 area, but again it found resistance and weakened. During the US session, the dollar gained momentum and pushed EUR/USD to the downside. The DXY climbed from 1-week lows, erased losses and is back above 97.00. At the same time, the 10-year yield fell to 2.91%, the lowest since September as the yield curve continues to flatten, reflecting concerns about the economy. The Dow Jones 2.25% and the Nasdaq 2.70%:
Among currencies, the risk aversion environment boosted the US dollar and weakened commodity and emerging market currencies. The biggest gainer so far is the yen that extended gains over the last hours.
EUR/USD Technical levels
To the downside, the immediate support could be seen at 1.1300/05 (Nov 30 low), followed by 1.1275 (Nov 27 low) and 1.1240. On the upside, resistance levels might now lie 1.1360 followed by 1.1380 and the key 1.1420 area (Nov 21, 23 and Dec 4 high).
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