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EUR/USD falls to six-day lows below 1.0500

The EUR/USD started the day on Wednesday trading in a range of just 20 pips between 1.0535, the daily high, and 1.0517. In the last hours, the pair has broken down and has broken the 1.0500 area to mark a six-day bottom at 1.0489.

The dollar strength, supported by risk-off tone of the markets in a context of falling stock markets due to fears of a recession in the United States, is behind the movement. The DXY index which measures the greenback has just risen to 104.68eu, its highest level since last June 23.

The calendar of the day presents several data that could move the pair. First, Europe will publish its June consumer confidence figures and Germany’s preliminary inflation for the same month. Afterwards, the US will reveal the final GDP for the first quarter of the year and the core PCE for the same period. Relevant will also be the speeches by Luis de Guindos, Vice President of the ECB, at 08:45 GMT, and by Jerome Powellchairman of the Fed, and Christine Lagardehead of the European Central Bank, both scheduled for 1:00 p.m. GMT.

EUR/USD Levels

With the pair quoting at time of writing above 1.0490, shedding 0.27% on the day, the next downside target awaits at 1.0482June 23 low, prior to support 1.0468, floor of June 22. Below 1.0400the descent can accelerate towards 1.0349minimum of 2022 and of the last five and a half years.

To the upside, the pair needs to recover the region 1.0600 to turn bullish and target resistance 1.0614June 27 ceiling, before aiming to reach the June maximum in 1.07740.

Source: Fx Street

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