EUR / USD hits four-week lows below 1.2100 as the US dollar strengthens

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  • The US dollar jumps across the board amid rising yields and a reversal in stocks.
  • EUR / USD is about to post the lowest weekly close since mid-April.

The EUR/USD it fell further and reached 1.2099, the lowest level since May 14. So far it remains above 1.2100 but remains under pressure as the US Dollar spreads gains across the board.

The DXY jumped to 90.50 after trading below 90.00 hours ago. At the same time, the 10-year yield rebounded from monthly lows to 1.46%. On Wall Street, the Dow Jones falls 0.11% and the Nasdaq remains flat.

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Economic data released Friday showed an increase above expectations in the University of Michigan Consumer Sentiment Index to 86.4 in June from 82.9. Market participants appear to position themselves ahead of the weekend and next week’s Fed meeting.

Bearish signs?

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From a technical perspective, the area around 1.2100 is a key support on EUR / USD. A consolidation below would leave the euro vulnerable to further losses. The next support is at 1.2060 followed by 1.2040. If he manages to defend the 1.2100 zone, he could rebound. Now 1.2150 is the immediate strong resistance followed by 1.2175.

Short-term technical indicators favor the downside, while the lowest close since April on the weekly chart also suggests that an extension of the downward correction is in play, particularly if it falls below 1.2100.

Technical levels


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