Categories: Markets

EUR / USD falls to fresh two-day lows near 1.2200

The EUR/USD has started the day on Wednesday touching an intraday high at 1.2226 in the Asian session. Shortly thereafter it began to slowly give ground, falling in the early European morning hours to a two-day low at 1.2205.

This decline has its origin in the rebound of the dollar, whose DXY index reached 90.01 today, its highest level since May 31. The good results of the US data are boosting the greenback. On the other hand, 10-year US bond yields remain flat at around 1.61%.

The euro, for its part, has been somewhat affected by the bad data of retail sales in Germany for the month of April. The indicator has fallen 5.5% monthly, worsening expectations of a decline of 2%.

Wednesday’s economic calendar hardly provides data of interest, but it does offer of the important speeches, that of Jens Weidmann, President of the Bundesbank, and that of Christine Lagarde, President of the ECB.

EUR / USD levels

In case of continuing to give ground, the Initial support appears in the 1.2200 psychological zone. Further down there is intermediate support at the 1.2180 / 85 zone, where the lows of May 31 are. Below, the target is 1.2132, the bottom of May 28, and the last two weeks.

On the upside, the first resistance is at 1.2254, yesterday’s and last seven days’ high. Above, the main barrier is located at 1.2265, maximum of May 25 and of the last five months.

.