EUR / USD falls to test 1.2000 after Lagarde’s speech, DXY turns positive

• The US dollar gains momentum during the US session as US yields rise.
• EUR / USD retreats sharply from 1.2070 to test 1.2000 again.

The EUR/USD it fell to test 1.2000 during the last hours after Lagarde’s press conference and amid a stronger US dollar. The DXY touched a new daily high at 91.35 and then moved back modestly.

ECB and US data.

The European Central Bank (ECB) kept its monetary policy stance unchanged as expected. The euro peaked during the press conference and then fell back. ING analysts point out that the ECB offered no surprises. “The phasing out of PEPP purchases was not discussed and comments on the exchange rate did not stand out. The euro made it through the meeting unaffected, and now the focus is on the expected improvement in euro zone data, which should help propel the undervalued EUR / USD higher this quarter. “

Economic data for the United States was mixed. Initial jobless claims fell to 547,000 the week ending April 17, the lowest level in a year, versus expectations for a modest increase. The Chicago Fed National Activity Index beat expectations in March. On the negative front, existing home sales fell 3.7% last month; forecasts pointed to an increase.

The US dollar was not affected by the economic figures. The dollar started to gain momentum after the start of the US session when US stocks moved lower. Later, a rally in US yields helped the dollar. The 10-year yield stands at daily highs at 1.58%.

Short-term outlook: looking at 1.2000

EUR / USD is testing the 1.2000 area. A consolidation below the 1.1990 support would suggest a deeper correction with the next decent support at 1.1945 / 50. On the positive side, if the euro remains above 1.2000, it would maintain a positive tone. The intraday outlook would favor more earnings with a return above 1.2040.

Technical levels