- Greenback gains momentum in the market despite political jitters.
- EUR/USD test 1.0950, below comes into attention critical 1.0925 zone.
The EUR/USD pair extended the decline and is testing the 1.0950 area. It reached at 1.0950 the lowest level since September 12, the day the European Central Bank announced its stimulus packed and EUR/SUD tested the 2019 low at 1.0925.
US Dollar gains ground as US yield rebounds
The Greenback is rising across the board on Thursday, even against commodity and emerging market currencies. Higher US yields are supporting the move. The 10-year yields rose from 1.66 to 1.69%, moving away from weekly lows.
Equity prices in Wall Street bounced to the upside over the last hours, erasing losses. Despite the demand for equities, the US Dollar printed fresh highs across the board. The Greenback is on-demand amid the political turmoil in Washington. At the same time, US President Trump mentioned that a trade deal with China could come sooner than expected.
Yesterday, House Speaker Nancy Pelosi announced that a formal impeachment inquiry into Trump will be launched. Trump’s responded today by publishing the transcript of the phone conversation he had with Ukrainian President Zelensky.
Data from the US came in better-than-expected with a sharp increase in new home sales that rose 7.1% in August to 713K (annual rate). Regarding Fed talk, Charles Evans said he was open-minded to another rate cut, depending on data.
Closer to YTD lows
If the EUR/USD pair breaks clearly below 1.0950, the next support in line is the 1.0925 zone, where YTD lows are seen. The mentioned area capped the downside several times in September. If broken, the Euro would be trading at the lowest since May 2017.
On the upside, now the 1.0980 zone has become the immediate resistance followed by 1.0995 (20-hour moving average) and 1.1025 (weekly top).
Share
