untitled design

Breaking!: EUR/USD sinks below 1.0500, bears eye on yearly lows

  • EUR/USD plunges to 10-month lows and sellers target yearly low of 1.0482.
  • Risk aversion fueled by the Fed’s hawkish rhetoric and a looming US government shutdown boosted the USD’s safe haven status.

The pair EUR/USD sinks below 1.0500 after hitting a daily high of 1.0574 as US Treasury yields continued to rise as market sentiment deteriorated as Wall Street posts losses of between 0.45% and 0.60%.

Fears of a possible United States (US) government shutdown in four days would likely delay the release of key economic data, needed in difficult times of high inflation and economic uncertainty. This, along with expectations of further tightening by the US Federal Reserve, caused US Treasury yields to rise to yearly highs, with the 10-year yield on the verge of to drill the 4.60% level. As already mentioned, US stocks continued to fall.

The increase in durable goods orders in the US highlighted the strength of the US economy and gave wings to the Dollar, as demonstrated by the Dollar Index (DXY), with buyers attentive to the next resistance zone at 107.19 , the maximum of November 30, 2022.

Sour sentiment in the Euro spread due to German consumer confidence data, deteriorating further despite hawkish rhetoric from members of the European Central Bank (ECB), which failed to boost EUR/USD higher.

EUR/USD Price Action – Daily Chart

EUR/USD Key Technical Levels


Latest price today 1.0501
Today Daily Change -0.0072
Today’s daily variation -0.68
Today’s daily opening 1.0573
daily SMA20 1.0711
daily SMA50 1.0859
SMA100 daily 1.0869
SMA200 daily 1,083
Previous daily high 1.0609
Previous daily low 1.0562
Previous weekly high 1.0737
Previous weekly low 1.0615
Previous Monthly High 1.1065
Previous monthly low 1.0766
Daily Fibonacci 38.2 1,058
Fibonacci 61.8% daily 1.0591
Daily Pivot Point S1 1.0554
Daily Pivot Point S2 1.0534
Daily Pivot Point S3 1.0507
Daily Pivot Point R1 1.0601
Daily Pivot Point R2 1.0628
Daily Pivot Point R3 1.0648

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular