- EUR/USD drops further, finding support at the 20-day moving average.
- US dollar consolidates gains against majors, after yesterday’s rate hike and today’s US data.
The EUR/USD pair dropped further on the back of a stronger US Dollar and reached a fresh weekly low. It bottomed at 1.1661 (20-day moving average) and as of writing was trading at 1.1675/80, down 60 pips for the day.
The move lower was boosted by a stronger US dollar on the back of monetary policy expectations from the Fed and also after today’s US economic data. Also, US yields added support to the greenback. Yesterday the Federal Reserve rose rates by 25 basis points as expected. Today’s data leaves the door open for another hike in December and also to more tightening next year.
EUR/USD: Eyes on 1.1650
The bearish momentum remains intact and the pair appears to be headed for a test of the next barrier that is seen at 1.1650. A break lower could point to more losses with a potential target at 1.1615, before the 1.1600 support area.
To the upside, immediate resistance might be located at 1.1695, followed by 1.1720 and then 1.1755. If the euro manages to rise back above the last one, it would remove the short-term bearish pressure, favoring a return to the previous trading range between 1.1800 and 1.1720.
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