EUR/USD Drops to Lowest Level in a Month, Threatens Key 100 DMA
The EUR/USD pair dropped further on Wednesday, touching its lowest level in over a month as the dollar continues to profit from the risk-off environment.
At the time of writing, the EUR/USD pair is trading at the 1.0820 zone, 0.4% below its opening price, after hitting its lowest level since April 3 at 1.0810.
Despite encouraging news regarding the United States debt ceiling, the market sentiment remained suppressed. President Joe Biden met with lawmakers on Tuesday and stated they could strike a deal by the end of the week.
US Treasury yields remain on the rise across the curve, further fueling the dollar's rally. The 10-year note rate climbed for a fourth consecutive day to reach 3.570%.
Meanwhile, the European Central Bank (ECB) members remain split regarding the path of interest rates, which seems to be weighing on the euro. Swap markets suggest a 25 bp hike is already fully priced in for the June meeting, with probabilities of an equal increase in July rounding 60%.
On Wednesday, data from the Eurozone showed the Harmonized Index of Consumer Prices (HICP) inflation rate was downwardly revised to 0.6% in April, advocating in favor of ECB doves.
From a technical perspective, the EUR/USD short-term technical outlook has turned full-on negative according to indicators on the daily chart and on smaller timeframes. After breaking below the 1.0900 area, the price is now on track to challenge the 100-day simple moving average (SMA), which is reinforcing the 1.0800 support zone.
If the EUR/USD breaks below the 1.0800 zone, it could accelerate losses targeting the 1.0750 level. Conversely, a recovery of the 1.0900 psychological and Fibonacci resistance level could improve the short-term structure, aiming at the 1.1000 level.
At the time of writing, the EUR/USD pair is trading at the 1.0820 zone, 0.4% below its opening price, after hitting its lowest level since April 3 at 1.0810.
Despite encouraging news regarding the United States debt ceiling, the market sentiment remained suppressed. President Joe Biden met with lawmakers on Tuesday and stated they could strike a deal by the end of the week.
US Treasury yields remain on the rise across the curve, further fueling the dollar's rally. The 10-year note rate climbed for a fourth consecutive day to reach 3.570%.
Meanwhile, the European Central Bank (ECB) members remain split regarding the path of interest rates, which seems to be weighing on the euro. Swap markets suggest a 25 bp hike is already fully priced in for the June meeting, with probabilities of an equal increase in July rounding 60%.
On Wednesday, data from the Eurozone showed the Harmonized Index of Consumer Prices (HICP) inflation rate was downwardly revised to 0.6% in April, advocating in favor of ECB doves.
From a technical perspective, the EUR/USD short-term technical outlook has turned full-on negative according to indicators on the daily chart and on smaller timeframes. After breaking below the 1.0900 area, the price is now on track to challenge the 100-day simple moving average (SMA), which is reinforcing the 1.0800 support zone.
If the EUR/USD breaks below the 1.0800 zone, it could accelerate losses targeting the 1.0750 level. Conversely, a recovery of the 1.0900 psychological and Fibonacci resistance level could improve the short-term structure, aiming at the 1.1000 level.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.