The EUR/USD has started the session on Tuesday with a bearish tone, falling from the daily high of the Asian opening at 1.0887 to the new two-day low recorded in European morning at 1.0853although in the last hour it has somewhat moderated its momentum.
The risk aversion returns to dominate the markets due to the lack of optimism about the Russian invasion in Ukraine. The dollar remains strong, also bolstered by rising 10-year Treasury yields, which have risen to the highest since 2018 above 2.8%. The DXY index that measures the green ticket has jumped in the last hour to 100.18, his highest level in almost two years.
Waiting for the ZEW sentiment data from the euro zone and Germany, the German inflation data has been published, setting a new record. Germany’s Consumer Price Index (CPI) rose 7.3% year-on-year in March, meeting expectations, and jumping sharply from 5.1% in February. Inflation thus reaches a new maximum since German unification.
Later in the day, the focus will be on US March inflation data, which is expected to jump to new highs in recent decades at 8.5% after hitting 7.9% in February.
EUR/USD Levels
With the pair quoting at time of writing above 1.0864, shedding 0.18% on the day, the next support should the decline extend appears at 1.0836floor of April 8, followed by 1.0806, 2022 low Registered March 7.
To the upside, the euro needs to get back above 1.0900 in order to attempt a downward assault. 1.0933April 11 ceiling, before heading to 1.0988maximum of April 5, and the area 1.1050/55where the highest level of April 4 is.
Source: Fx Street
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