- EUR / USD fell to weekly lows near 1.1535 / 40 on Thursday.
- The dollar maintains the offered tone intact despite falling yields.
- Initial US claims improved estimates by 269,000.
The intense upward movement of the dollar keeps the EUR/USD under pressure. The pair has lost 80 pips so far this day, falling to fresh four-day lows at 1.1537.
EUR / USD offered near yearly lows
The EUR / USD came under moderate selling pressure on Thursday due to the persistent rally in the dollar, which pushed the US Dollar Index (DXY) to new 3-week highs around 94.35 and at the same time shifted focus to 2021 highs at 94.50.
In fact, the pair quickly outpaced post-FOMC gains on Wednesday and resumed the downtrend amid lingering negative mood in the risk space and despite US yields trading defensively throughout. of the curve.
Germany’s 10-year yields follow the same path, navigating the 4-week lows of around -0.22%.
On the economic calendar, early results showed that late October services PMIs in both Germany and the euro area fell back from previous readings, while producer prices in the bloc rose more than expected in September. .
On the other hand, Challenger job cuts rose to 22,822 in October, weekly jobless claims increased by 269,000 in the week through October 30, and the trade deficit widened to $ 80.9 billion in September.
Technical levels
At time of writing, the pair is shedding 0.63% at 1.1538. A break below 1.1535 (weekly low on October 29) would target 1.1524 (annual low on October 12, 2021) on its way to 1.1495 (monthly low on March 9, 2020).
To the upside, the next bullish barrier is at 1.1687 (55-day SMA) followed by 1.1692 (monthly high on October 28) and finally 1.1755 (weekly high on September 22).
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