- The US dollar is jumping across the board amid higher yields and stock reversals.
- EUR / USD is approaching its lowest weekly close since mid-April.
EUR / USD fell further and touched 1.2099, its lowest level since May 14. So far, it holds above 1.2100 but remains under pressure as the US dollar continues to rally across the board.
The DXY jumped to 90.50 after trading less than 90 hours ago. At the same time, the yield on 10-year bonds bounced from monthly lows to 1.46%. On Wall Street, the Dow Jones is down 0.11% and the Nasdaq remains unchanged.
Economic data released on Friday showed that the University of Michigan Consumer Sentiment Index exceeded expectations to 86.4 in June from 82.9. Market participants appear to be positioning themselves ahead of the weekend and next week’s Fed meeting.
Technically speaking, the area around 1.2100 is a key support for EUR / USD. Consolidation below will leave the euro vulnerable to further losses. The next support is at 1.2060, followed by 1.2040. If he manages to defend the 1.2100 area, he may rebound. 1.2150 is now the closest strong resistance, followed by 1.2175.
Short-term technical indicators point to the bearish side, while the weekly lowest close since April also suggests a continuation of the bearish correction is at stake, especially if it falls below 1.2100.