EUR/USD trims losses from fresh 2-week low at 1.0380

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  • EUR/USD trims losses after US data
  • The dollar loses strength, but remains firm in a context of risk aversion.
  • US and European bond yields continue to decline.

EUR/USD is paring losses after falling to a fresh two-week low at 1.0380. The pair is trading at 1.0415, trying to break away from the floor, but still facing downward pressure.

The rebound began after the publication of economic data from the United States that showed a 0.3% rise in the core price index of personal consumption spending in May, slightly below expectations. For their part, the initial requests for unemployment benefits remained around 230,000.

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A slight improvement in the equity markets that eased the red, fueled the EUR/USD rebound. Wall Street futures point to an opening with an average drop of 1.20%. The negative climate continues to support the dollar in the market.

Previously, EUR/USD declines had a supportive factor in the higher spread between European and US bonds. Monetary tightening expectations by the European Central Bank softened. Germany’s 10-year bond yields 1.39% (down more than 8% on Thursday).

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Another factor that gave more weight to EUR/USD was technical. The failure to recover 1.0600, coupled with the break of 1.0500 and 1.0470 enabled an acceleration to the downside. On the downside, 1.0400 is again a support to consider and then 1.0380; the last strong defense of 1.0350.

Technical levels

EUR/USD

Panorama
Last Price Today 1.0398
Today’s Daily Change -0.0045
Today’s Daily Change % -0.43
Today’s Daily Opening 1.0443
Trends
20 Daily SMA 1.0563
50 Daily SMA 1.0586
100 Daily SMA 1.0821
200 Daily SMA 1,112
levels
Previous Daily High 1.0536
Previous Daily Minimum 1.0435
Previous Maximum Weekly 1.0606
Previous Weekly Minimum 1.0469
Monthly Prior Maximum 1.0787
Previous Monthly Minimum 1,035
Daily Fibonacci 38.2% 1.0474
Daily Fibonacci 61.8% 1.0497
Daily Pivot Point S1 1.0407
Daily Pivot Point S2 1.0371
Daily Pivot Point S3 1.0307
Daily Pivot Point R1 1.0507
Daily Pivot Point R2 1.0572
Daily Pivot Point R3 1.0608

Source: Fx Street

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