- The dollar resumed the rises after the break on Monday.
- Weakened EUR / USD falls to lows in a week and a half.
EUR / USD hit 1.2075 on Monday before starting a pullback, which picked up pace in Tuesday’s Asian session and accelerated in European hours. The pair extended the decline to 1.1998, the lowest level since April 22. But it managed to come back and hold above the 1.2000 area, which is an important support.
Should the euro lose the 1.1990 / 1.2000 area, the technical outlook would be weakened pointing to further losses. The next strong support can be seen at 1.1945 / 50. As long as it manages to stay above it, some bullish rebound could be expected. In the very short term, downward pressure on the euro will prevail as long as it is below 1.2020.
The fall of the EUR / USD occurs in a context where the dollar has recovered its good tone after the decline on Monday. The DXY is rising and is trading near the high on Monday, around 91.30. At the same time, Treasury bond yields are advancing modestly.
Monday’s data from the US was mixed, but did not change the outlook that the economy remains strong. Figures for foreign trade and factory orders for March will be published today. In addition there will be several officials from the Federal Reserve who will speak in public (Kaplan, Kashakari and Daly).
Technical levels
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