- US dollar rises sharply against EM currencies, hits 2-week highs versus euro.
- EUR/USD remains limited around 1.1250 despite bearish bias.
The EUR/USD pair dropped to 1.1240 reaching the lowest level since March 12. It was holding near the lows, close to the 1.1250 area. Price action remain limited in the pair during the US session, holding a bearish tone.
The move to the downside was boosted by a stronger US dollar across the board. It is rising sharply against commodity and emerging market currencies amid global growth concerns that triggered risk aversion.
Regarding the euro, it remains weak and EUR/USD is about to post the second slide in-a-row and the fourth daily loss out of the last five days. Today the euro is even lower against the pound on Wednesday.
EUR/USD Levels to watch
The pair holds a bearish tone and if it drops below 1.1220 the 1.1200 zone will likely be tested and the 2019 low at 1.1175 would be exposed. To the upside, the immediate resistance level is 1.1265 followed by 1.1285 (Mar 27 high and 55-SMA in 4-hour chart) and 1.1300.
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