- The dollar rises across the board during the American session.
- EUR/USD is under pressure, testing critical support.
- The break below 1.0100 could trigger a parity test.
The EUR/USD fell sharply during the American session and reached a low of 1.0107, the lowest level since July 27. It remains near the lows, pressured by a stronger US dollar across the board.
The greenback strengthened despite US yields holding steady and stocks on Wall Street staying on the sidelines. DXY is up 0.55% and has reached monthly highs near 107.30.
Turning to economic data, the weekly report showed that initial jobless claims fell to 250,000, below market consensus; the Philadelphia Fed rose to 6.2 in August from -12.3, also beating expectations. On the downside, existing home sales fell to 4.81 million, posting the sixth consecutive monthly decline.
Short term outlook
EUR/USD is facing mounting downward pressure and is close to critical support at 1.0110. A break below 1.0100 would expose the parity level, ending weeks of ranging. Short-term bearish pressure is likely to persist as long as below 1.0135.
The euro needs to recover 1.0135 to avoid further losses. The next resistance is located at 1.0160, followed by the strong barrier near 1.0200.
Technical levels
Source: Fx Street
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