- EUR / USD turned lower near 1.2100.
- Price lateralized for the day, still under pressure.
The EUR/USD it rose after the start of the American session towards the 1.2100 zone again. As it happened in the European hours, it lost momentum and adjusted downward. It recently fell to 1.2064, above the daily low of 1.2050. The euro remains weak against the US dollar, close to weekly lows.
The pullback from 1.2100 came as the US dollar leveled off across the board after a slide after the Wall Street opening bell and amid a drop in US yields. The 10-year term fell to 1.66% after hitting 1.70% earlier on Thursday.
The improvement in risk appetite helped EUR / USD hold above 1.2050. The Dow Jones is up 1.30% and the Nasdaq is up 0.65%. US economic data again showed higher-than-expected inflation readings (April PPI) and a larger-than-expected drop in initial jobless claims.
Short-term outlook: Fails at 1.2100
In the short term, the EUR / USD pair is skewed to the downside. A test of the 1.2050 zone should not be ruled out in the next sessions. The next support is at 1.2025 and then a strong barrier is seen at 1.1995 / 1.2000.
A consolidation above 1.2100 would ease the downward pressure. And above 1.2120, the short-term bias would likely favor the upside.
Technical levels
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