He EUR/USD has lost more than 70 pips since the start of Monday, slipping into European morning to its lowest level in 19 days at 1.2155 zone. At time of writing, the pair is trading above 1.2163, shedding 0.51% on the day.
The fall of the cross is directly related to the rise of the dollar, whose DXY index has shot up to 90.51, its highest level since December 23. The rise is directly related to the growth of 10-year US bond yields, which have risen beyond 1.12%, an area last visited in March 2020.
Worries about the coronavirus are not helping the euro either, as the advance of the disease freezes for now the expectations of a strong economic recovery in the first half of the year.
The Eurozone today released its Sentix Investor Confidence Index, showing an improvement to 1.3 in January, above the expected 0, its first positive result after 10 negative months. Later in the day, ECB President Christine Lagarde will speak at the One Planet summit in Paris. In the United States a speech by Raphael Bostic, a member of the FOMC, is scheduled.
EUR / USD levels
The first major support appears at 1.2129 (weekly low on December 21), followed by 1.2058 (weekly low on December 9). Lower expect 1.2032 (23.6% Fibonacci from the 2017/2018 rally).
To the upside, a break of 1.2349 (2021 high marked on January 6) would point towards 1.2413 (monthly ceiling registered on April 17, 2018). Higher up, the target would be 1.2476 (March 27, 2018 high).
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