EUR/USD pulls back from 1.0600 and falls to multi-day lows near 1.0500

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  • The dollar gains momentum in the American session.
  • The euro makes new lows against the dollar, the Swiss franc and the British pound.
  • Stocks Erase Wall Street Gains, US Yields Off Highs.

The EUR/USD continued to fall and bottomed out at 1.0501, the lowest level since Thursday. She then cut losses and moved up to 1.0530. The move lower came amid a stronger US dollar across the board.

The greenback gained ground as Wall Street indices turned negative. The Dow Jones fell 0.51% and the Nasdaq 1.74%. Yields in the US fell, with the 10-year yield at 3.20% and the 30-year yield at 3.31%.

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US economic data disappointed expectations. The Conference Board consumer confidence index fell to 98.7 in June, the lowest level in 16 months. The Richmond Fed manufacturing index fell to -19 in June from -9, against the market consensus of -11. The S&P/Case Shiller price index rose 1.6% in April. The figures did not affect the dollar.

The euro is among the worst performers of the American session. EUR/CHF fell to test last week’s lows near 1.0050 and EUR/GBP fell back to 0.8620. The common currency did not benefit from comments from European Central Bank officials.

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The ECB’s annual forum in Portugal will have its last day on Wednesday. A panel discussion will include Lagarde (ECB), Powell (Fed) and Baily (BoE).

Short term outlook

EUR/USD is moving away from the lows and is back above 1.0530. The pair is likely to continue moving sideways between 1.0500 and 1.0600. Early on Tuesday the Euro traded above 1.0600 but was again rejected from those levels; it needs to consolidate above those levels to open the doors to more gains.

Immediate resistance is seen at 1.0550 (20 SMA on the 4 hour chart); while below EUR/USD could retest 1.0500. The next level to watch is last week’s low at 1.0467.

Technical levels

EUR/USD

Panorama
Last Price Today 1.0525
Today’s Daily Change -0.0061
Today’s Daily Change % -0.58
Today’s Daily Opening 1.0586
Trends
20 Daily SMA 1.0584
50 Daily SMA 1.06
100 Daily SMA 1.0839
200 Daily SMA 1.1133
levels
Previous Daily High 1.0615
Previous Daily Minimum 1,055
Previous Maximum Weekly 1.0606
Previous Weekly Minimum 1.0469
Monthly Prior Maximum 1.0787
Previous Monthly Minimum 1,035
Daily Fibonacci 38.2% 1,059
Daily Fibonacci 61.8% 1.0575
Daily Pivot Point S1 1.0552
Daily Pivot Point S2 1.0519
Daily Pivot Point S3 1.0488
Daily Pivot Point R1 1.0617
Daily Pivot Point R2 1.0648
Daily Pivot Point R3 1.0681

Source: Fx Street

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