- The dollar strengthens in the market with a climate of risk aversion.
- EUR/USD at 20-year highs and very close to parity.
- The dollar index also hits a 20-year high.
The EUR/USD accelerated the decline and fell to 1.0049, reaching the lowest level since December 2002. The pair is trading at 1.0065, trying to break away from the lows, but still under pressure and looking closer at parity.
The pullback is being driven by a general rise in the dollar. DXY is up more than 1%, and is above 108.00. At the same time Treasury bond yields fall sharply. The US 10-year bond yields 2.99%, while the 30-year bond yields 3.16%. The German 10-year bond yield falls more than 7% on Monday and is at 1.24%.
This reflects the climate of risk aversion, given fears of a global recession. The Dow Jones falls 0.40%, wedWhile the Nasdaq plummets more than 2%.
The EUR/USD picture remains bearish, even despite oversold indicators. The euro continues to look for support. In case of losing 1.0050 the next support can be seen at 1.0020 before the 1.0000 zone. On the upside, resistances are at 1.0100, followed by 1.0155.
Technical levels
Source: Fx Street
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