EUR/USD accelerates pullback below 0.9800 on dollar strengthening

  • The euro corrects recent rise at the end of the week.
  • The dollar gains momentum and advances after two sharp falls.
  • EUR/USD falls almost a hundred pips from the daily high.

EUR/USD is falling on Friday and threatens to end the recovery that was underway. The pair hit daily lows below 0.9760 and remains in a negative tone ahead of the American session as the dollar strengthens.

hours ago, EUR/USD hit as high as 0.9852, the highest level in a week. After failing to stabilize above 0.9835, it lost momentum. Recently fell to 0.9753, a new daily low.

The decline occurs before a general strengthening of the dollar in the market. The DXY up 0.63% on the day. This despite the fact that Treasury bond yields have fallen. In Europe, the decline in yields is becoming more significant, putting downward pressure on EUR/USD.

Eurozone inflation hit 10% in September from 9.1% and beat market expectations of 9.7%. The figures did not generate major surprises considering that on Thursday those from Germany had shown a similar picture. This further affirms expectations of further monetary tightening by the European Central Bank. In another report it was known that the unemployment rate in August remained at 6.6%.

In the US, the personal income and spending report will be published on Friday, which includes the price index for personal consumption spending. The latter is a measure of inflation closely watched by the Federal Reserve. In addition, the Chicago PMI for September and the final consumer confidence report for September from the University of Michigan will be published.

Technical levels

EUR/USD

Overview
Today last price 0.9764
Today Daily Change -0.0052
Today Daily Change % -0.53
Today daily open 0.9816
trends
Daily SMA20 0.9901
Daily SMA50 1.0039
Daily SMA100 1.0251
Daily SMA200 1.0663
levels
Previous Daily High 0.9816
Previous Daily Low 0.9636
Previous Weekly High 1.0051
Previous Weekly Low 0.9668
Previous Monthly High 1.0369
Previous Monthly Low 0.9901
Daily Fibonacci 38.2% 0.9747
Daily Fibonacci 61.8% 0.9705
Daily Pivot Point S1 0.9696
Daily Pivot Point S2 0.9576
Daily Pivot Point S3 0.9515
Daily Pivot Point R1 0.9876
Daily Pivot Point R2 0.9936
Daily Pivot Point R3 1.0056

Source: Fx Street

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