EUR/USD shows some action and drops to 9-day lows, tests 1.1170

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  • US Dollar rises across the board supported by US data and yields. 
  • Equity prices in Wall Street sharply higher and DXY at strongest in almost two weeks. 

The EUR/USD pair dropped further below 1.1200 and printed a fresh daily low at 1.1171. It remains above the 1.1170, with limited losses and still within the range that prevailed last week. 

A stronger US dollar pushed the pair to the downside. Better-than-expected US data triggered a modest rally of the greenback that kept rising after the beginning of the US session. Higher US yields and a rally in Wall Street added further support to the dollar. 

The DXY is having the best performance since April 24 and trades at 97.82, above last week highs. Regarding bonds, the US 10-year yield climbed from 2.36% to 2.41%. The DOW JONES gains 1.15% and stands at the highest level since last Friday. 

Levels to watch 

Despite losing ground on Thursday to weekly lows, the EUR/USD continues to move within a 100-pip range since May 6.  The decline so far found support around the 1.1170 zone; a break lower would expose last week lows at 1.1160. Below the next support is seen at 1.1135 that the 2019 low at 1.1110. 

On the upside, initial resistance might be seen at 1.1195, followed by 1.1220. A consolidation above 1.1220 could put the EUR/USD back into the 1.1220 – 1.1260 range. 
 

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