- EUR / USD suffers the worst daily decline in almost two weeks.
- Ahead: US economic reports and Fed minutes.
The EUR / USD is validating a fall of almost 50 pips on Wednesday, as the dollar rises. The price fell to 1.2053, after previously not being able to regain ground, remaining below 1.2070.
The downward pressure occurs before a rise in the dollar in the market. DXY is at its highest in days, just shy of 91.00. The advance of the greenback is behind the rise in the yields of Treasury bonds. The 10-year rate reached 1.33% hours ago and after falling to 1.27%, it is already above 1.30%.
The bond market It is attracting great attention as a result of these movements that strengthen the dollar. In equity markets, stocks are backing slightly. The lack of appetite for risk on Wednesday is another factor that may favor the dollar.
In minutes they will be published important US data, with figures for wholesale inflation and retail sales. Then it will be the turn of the minutes of the last meeting of the Federal Reserve. In addition, the president of the Boston Fed, Eric Rosengren will make a public presentation.
Technical overview
The EUR / USD increased weakness as it fell below the 20-day moving average that is passing through 1.2100 / 05 on Wednesday. A return above would relieve the pressure. Above, the area to take into account will be 1.2150 and if a close occurs above, the euro would be strengthened.
In the opposite direction, around 1.2050 / 55 is the first support line followed by 1.2000 and the current month’s lows at 1.1945.
Technical levels
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