- Strong rise in the dollar after PMI data.
- EUR / USD reverses dramatically from near highs in months to lows in days.
EUR / USD changed dramatically out of trend following the release of November PMI data from the US which came as a positive surprise. The pair was trading in the two-week high zone around 1.1900 and then tumbled down more than 70 pips in a few minutes.
The sharp decline came from a dollar rally across the market. From one moment to the next the dollar changed trend, not only cutting losses but also going from the worst currency to the best performing one.
The PMI data, which was expected to show a slight decline, rose to highs in months, unleashing the rally. Gold also fell sharply and stocks reached new highs, although they later moderated their advance.
EUR / USD is trading at 1.1820, the lowest level since Thursday and is aiming to test last week’s lows around 1.1810. EUR / USD is still in the range, but if it breaks down and asserts itself lower, it would be vulnerable to further losses, as it would confirm a reversal and breakout of a multi-day range.
Technical levels
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