- The dollar remains firm throughout the market, the DXY closer to 94.00.
- EUR / USD breaks below the August low.
EUR / USD continued the decline and fell to 1.1637, the new multi-month low. It then bounced and is trading around 1.1650, away from lows but still under heavy pressure from a widespread dollar advance.
Wednesday’s is on track to be the fourth consecutive decline in the EUR / USD with the lowest close since the beginning of October last year. The context continues to favor the dollar, given the combination of a climate of caution in global markets and the rise in the yields of Treasury bonds.
The economic calendar on Wednesday may take a back seat, overshadowed by movements in the bond market and the market in general. The pending home sale report will be published, being the most relevant data of the day. Again several Federal Reserve officials will speak in public.
On Tuesday, Jerome Powell, the Fed chairman, spoke in the Senate on all issues, and the bond market reacted with more hikes in Treasury yields.
The weakness of the EUR / USD remains firm, and even more so to continue below 1.1660, where the August floor is. The next strong support can be found around 1.1600 / 05. A return above 1.1675 could ease the downward pressure. The next major resistance is at 1.1705.
Technical levels
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