EUR / USD loses momentum and retreats towards the 1.1860 zone

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The EUR/USD It started the day on Tuesday with a rally of almost 15 pips that took it to a daily high at 1.1885. Subsequently, the pair has been losing ground, falling in the European morning to a low of the day at 1.1859.

The decline has been caused by the dollar rally on all fronts, stimulated by the increase in U.S. Treasury yields. The 10-year yield just hit 1.361%, its highest level in nearly four weeks. The DXY index that measures the greenback has risen in the last hour to 92.31, its highest since September 2.

The economic calendar this morning brought Germany’s industrial production figures for July, which showed a rise of 0.7% monthly and 5.7% year-on-year, improving forecasts. In a few minutes, the Eurozone will publish the GDP for the second quarter, which is expected to fall 0.6% quarter-on-quarter. ZEW economic sentiment data for the euro zone and Germany will also be released.

EUR / USD Levels

With the pair trading at the time of writing above 1.1869, very close to its opening price, the Next support for a retracement extension is at 1.1855, yesterday’s minimum. Further down awaits the psychological zone of 1.1800 and the region of 1.1725 / 26, where the August 26 floor is.

On the upside, initial resistance is at 1.1885, daily high, followed by 1.1909, ceiling of September 6 and the last two months. If passed, 1.1975 will be the next important barrier, as it was the highest level on June 25.

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