The EUR/USD continues to extend its decline this Friday after the sharp setback experienced yesterday after Jerome Powell’s speech. The pair has lost about 60 pips so far this day, falling in the early hours of the European session to 1.1914, new minimum of three months.
The single currency’s decline is based on the strength of the dollar, whose DXY index has just risen to 92.01, its highest level since December 1. The fact that Fed Chairman Jerome Powell ignored the rise in yields yesterday gave way for them to rise alongside the dollar. The 10-year US bond yields today reached 1.58%, their highest level for a year, although now they are around 1.54%.
In the economic calendar of the day, the German data for factory orders in January, which was better than expected, did not have weight, rising 1.4% compared to the 0.7% forecast after falling 2.2% in December. What will be relevant in the next few hours will be the US NFP employment data for the month of February, the result of which is separated into 182,000 new jobs created. A disappointment or a higher than expected figure could move the dollar strongly.
EUR / USD levels
With the pair trading at the time of writing above 1.1926, shedding 0.37% daily, the next support appears in zone 1.1900. Below that, the target will be 1.1800, the low of November 23, 2020.
In the event of regaining ground, the first resistance is in the psychological zone 1.2000. Higher up awaits 1.2113, ceiling of March 3 and the whole week.