EUR / USD continues to decline, to new daily lows around 1.1620

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  • EUR / USD accelerates losses towards the 1,620 area.
  • The core US PCE increased 3.6% YoY, the overall PCE gained 4.4% YoY.
  • US consumer sentiment is next on the agenda.

The selling pressure around the single currency is now accelerating and forces the EUR/USD to fall back to the 1.1620 area, or new daily lows.

EUR / USD found resistance near 1.1690

EUR / USD sinks into negative territory at the end of the week along with the rapid rally in the dollar.

In fact, the dollar gains extra strength and manages well to leave behind the recent zone of multi-week lows around 93.30 (October 28) supported by profit-taking sentiment in the space associated with risk and the rise of US yields

In Germany, German 10-year yields advanced to fresh multi-day highs around -0.08%.

On the agenda, US inflation figures tracked by the overall PCE increased to 4.4% annualized and 3.6% when it comes to the core PCE (excluding food and energy costs). In other US data, personal spending expanded 0.6% month-on-month in September and personal income contracted 1.0% month-on-month. Later in the session, final consumer sentiment for October will close out the weekly calendar.

Technical levels

So far, the pair is shedding 0.46% at 1.1623 and faces the next bullish barrier at 1.1692 (October 28 monthly high) followed by 1.1698 (55-day SMA) and finally 1.1755 (September 22 weekly high). On the other hand, a break below 1.1582 (October 28 weekly low) would target 1.1571 (October 18 low) en route to 1.1524 (October 12, 2021 low).

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