- The US dollar soars even as US yields decline modestly.
- EUR / USD is targeting 1.1600, heading for the lowest close in over a year.
The EUR/USD it fell further and hit a new 11-month low at 1.1614. It remains under pressure, near the bottom of the range, with the USD gaining strength across the board.
The motor of the big fall of the EUR / USD continues being the rally of the dollar. No particular fundamental report on Wednesday helped the dollar. US yields are modestly lower, with the 10-year yield at 1.50%. On Wall Street, the Dow Jones is up 0.60% and the Nasdaq is up 0.78%. Therefore, at the moment there is no rise in returns or aversion to risk.
The DXY broke above 94.00 and jumped to 94.23, the highest level since November last year. It is up 0.50%. Gold and silver are plummeting.
Looking at 1.1600 / 05
EUR / USD is falling for the fourth day in a row and is heading towards the lowest daily close since July 2020. The next strong support seen is seen at the 1.1600 / 05 area. Key short-term resistance is now 1.1660 and a rally above it would ease the downward pressure.
Technical levels
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