Search ForexCrunch
  • Greenback gains momentum as US stocks, oil tumble.
  • EUR/USD testing daily lows, under pressure near 1.1250.

The EUR/USD pair printed a fresh daily low after the beginning of the American session at 1.1256 and then bounced modestly to the upside. As of writing, it trades at 1.1270, down 40 pips for the day. The pair is correcting lower after rising from 1.1170 to 1.1350 during the first two days of the week.

The key driver is a stronger US dollar across the board amid risk aversion. Equity prices in Wall Street are accelerating the decline as the rally of the dollar gains speed.

The DXY is up 0.35%, trading back at the 97.00 area.  The Dow Jones loses 2.40% and the Nasdaq 2.05%. The latest run lower in US stocks followed the latest COVID-19 reports from several US states.

Short-term technical outlook

The bearish intraday bias in EUR/USD will remain in place while under 1.1300 (20-hour moving average). Before that level, a resistance is seen at 1.1280.

On the flip side, the pair is testing the 1.1250/55 support area. A break lower would add more pressure to the downside, exposing the next support at 1.1225.