- US dollar strengthens amid risk aversion, DXY rises 0.30%.
- EUR/USD trims a fraction of its recent gains.
- EUR/CHF plummets over a hundred pips in minutes.
The EUR/USD trades back below 1.0500 as USD strengthens amid deteriorating market sentiment. At the same time, the sharp decline in EUR/CHF also weighed on the euro.
Wall Street and EUR/CHF in free fall
Wall Street’s main stock indices fell more than 2% and have trimmed the gains of the previous two days. Pessimism about the global economic outlook is back on the table and is also affected by tougher rhetoric from Federal Reserve and European Central Bank officials.
As risk aversion set in, demand for Treasuries surged. The 10-year US bond yield fell to 2.90% and the 30-year bond yield to 3.11%. The decline in yields so far prevents further appreciation of the US dollar.
The context boosted the Swiss franc and the yen, which are the best performers on Wednesday. EUR/CHF lost more than a hundred pips during the last two hours, going from 1.0480 to 1.0364 and hitting the euro. Today, the president of the Swiss National Bank, Thomas Jordan, has repeated that they are “ready to intervene in the foreign exchange markets when necessary”.
Is recovery over?
At the time of writing, EUR/USD is trading at 1.0489, daily low. The price is testing the 55 and 200 hourly Simple Moving Averages. A consolidation below should signal a possible end to the rally from the multi-year low. The next support is at 1.0435, followed by 1.0390.
To the upside, the critical short-term area to watch is 1.0525/30, a horizontal resistance and the 20-hour SMA. Above, look for the 1.0555 level and the daily high at 1.0563.
Technical levels
EUR/USD
Panorama | |
---|---|
Last Price Today | 1.0515 |
Today’s Daily Change | -0.0034 |
Today’s Daily Change % | -0.32 |
Today’s Daily Opening | 1.0549 |
Trends | |
---|---|
20 Daily SMA | 1.0578 |
50 Daily SMA | 1.0806 |
100 Daily SMA | 1.1049 |
200 Daily SMA | 1.1303 |
levels | |
---|---|
Previous Daily High | 1.0556 |
Previous Daily Minimum | 1.0428 |
Previous Maximum Weekly | 1.0592 |
Previous Weekly Minimum | 1,035 |
Monthly Prior Maximum | 1.1076 |
Previous Monthly Minimum | 1.0471 |
Daily Fibonacci 38.2% | 1.0507 |
Daily Fibonacci 61.8% | 1.0477 |
Daily Pivot Point S1 | 1.0466 |
Daily Pivot Point S2 | 1.0384 |
Daily Pivot Point S3 | 1.0339 |
Daily Pivot Point R1 | 1.0594 |
Daily Pivot Point R2 | 1.0638 |
Daily Pivot Point R3 | 1.0721 |
Source: Fx Street

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