EUR/USD hits 3-week lows and tests critical 1.0100 zone amid stronger USD

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  • 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.

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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

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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

EUR/USD

Panorama
Last Price Today 1.0088
Today’s Daily Change -0.0092
Today’s Daily Change % -0.90
Today’s Daily Opening 1,018
Trends
20 Daily SMA 1.0211
50 Daily SMA 1.0297
100 Daily SMA 1.0498
200 Daily SMA 1.0875
levels
Previous Daily High 1.0203
Previous Daily Minimum 1.0146
Previous Maximum Weekly 1.0369
Previous Weekly Minimum 1.0159
Monthly Prior Maximum 1.0486
Previous Monthly Minimum 0.9952
Daily Fibonacci 38.2% 1.0181
Daily Fibonacci 61.8% 1.0167
Daily Pivot Point S1 1,015
Daily Pivot Point S2 1.0119
Daily Pivot Point S3 1.0092
Daily Pivot Point R1 1.0207
Daily Pivot Point R2 1.0234
Daily Pivot Point R3 1.0265

Source: Fx Street

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