EUR / USD falls to one-week lows at 1.2050

  • Euro remains under pressure against the dollar, recovers against the pound.
  • EUR / USD finds support at the 1.2050 zone, for now.

The EUR / USD is falling again on Thursday after Wednesday’s major drop. The price reached 1.2050, the lowest level in a week after failing to stay above 1.2100. The setback occurs in the face of a continuation of the dollar rally throughout the market.

The greenback is still up, in a movement that was activated after inflation data higher than expected in the United States for the month of April. This drove the rate of yield on Treasuries up sharply and boosted the dollar. The 10-year rate is 1.70%.

The Thursday there will be more important data, such as wholesale inflation and the weekly report of unemployment benefit requests, which could have an impact on the market and on the dollar. In addition, the following Federal Reserve officials will speak: Thomas Barkin, Christopher Waller, and James Bullard. Your words behind the inflation data will be important.

In the technical landscape, the short-term tone favors the declines in the EUR / USD. This could change with a commit about 1.2135. But before this level the euro will have to overcome the resistance of 1.2085 and 1.2106 (maximum of the day). On the downside, support is now seen at 1.2050 (daily low), followed by 1.2035 and 1.1995.

Technical levels

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