- The dollar gains momentum in the American session and rises throughout the market.
- US data shows that inflation remains high.
- EUR/USD turns negative, remains in range.
The EUR/USD broke firmly below 1.0200 after the release of US economic data, and after the opening of the American session. The pair dropped to 1.0144 marking a new low for the day.
The dollar gained momentum after the publication of personal income and spending data that showed that both income and spending rose above expectations in June, but at the same time, the prices detailed in the indicator did.
Something similar had been known about the Eurozone hours ago, with the figures for the second quarter, which showed higher-than-expected growth, but also higher inflation in July.
The firmness of the dollar explains the fall of the EUR/USD on Friday. The pair remains in a wide range with strong resistance around 1.0260 and next key support in the 1.0100 area. A daily close below 1.0100 would put the euro on track for parity; while above 1.0280, heading for levels above 1.0300.
Technical levels
Source: Fx Street
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