- EUR / USD fell to fresh 16-month lows around 1.1250.
- The dollar approached 2021 highs modestly.
- The ECB’s Lagarde said there is no rush to make an adjustment.
Sellers keep the European currency under pressure and force the EUR/USD to retreat to fresh 16-month lows at the 1.1250 zone on Friday.
EUR / USD weakened by risk aversion
EUR / USD remains depressed due to persistent buying pressure on the dollar and prevailing risk aversion among market participants.
In fact, renewed demand for the dollar prompted the US dollar index to reverse recent weakness and once again challenge the 2021 highs area near 96.20 despite the downward correction in US yields.
At the beginning of the session, President C. Lagarde suggested that there is no rush to prematurely adjust current monetary conditions.
Technical levels
So far, the pair is shedding 0.73% at 1.1288 and faces the next bullish barrier at 1.1422 (10-day SMA) followed by 1.1464 (weekly high on Nov 15) and finally 1.1509 (20-day SMA). On the other hand, a break below 1.1250 (November 17, 2021 low) would target 1.1185 (July 1, 2020 monthly low) en route to 1.1168 (June 19, 2020 low).
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