- US dollar gains momentum against G10 currencies.
- DXY rises for the second day in a row.
- EUR/USD with bearish bias after being rejected from near 1.0300.
The EUR/USD it falls for the second day in a row, and has recently posted a new six-day low at 1.0121. From Tuesday’s high it has fallen nearly 175 pips amid a rally in the US dollar.
On Wednesday, the USD rises again, especially against the G10 currencies, while US yields continue to rise. The 10-year Treasury yield hit 2.85%, the highest level since July 22, before retreating to 2.79%.
US economic data contributed to the rise in the dollar. The ISM services PMI unexpectedly rose in July to 56.7 from 55.3, against the market consensus of 53.5. The key report will be on Friday with the non-farm payrolls.
Improved risk sentiment limits dollar gains. On Wall Street, the Dow Jones rises 0.92% and the Nasdaq soars 1.82%. Stocks break a two-day losing streak.
Looking at crucial support
The fall of the EUR/USD pushed the price below the 20-day simple moving average (1.0155). Now approaching the critical short-term support zone around 1.0100, a consolidation below should open the door for more losses.
To the upside, now 1.0150 is the immediate resistance followed by 1.0210 (20-SMA in four hours). As long as it is below 1.0300, the gains seem limited for the pair.
Technical levels
Source: Fx Street
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