- The US dollar is skyrocketing across the board after US economic data.
- EUR / USD falls from near-key medium-term resistance to weekly lows.
The EUR/USD It fell sharply almost a hundred pips in a few minutes from the 1.1900 to 1.1799 area, reaching the lowest level since November 12. It then recovered modestly and at time of writing is trading at 1.1815, 40 pips below Friday’s close.
The downward movement came as a result of a general rally in the US dollar following the release of the preliminary US PMI Markit report for November. The index showed an unexpected rise to the highest level in years.
The dollar began to gain momentum, making a dramatic turnaround. The DXY is now near the weekly highs, after testing the 92.00 area hours ago. US yields hit new highs, helping the dollar.
From a technical perspective, the EUR / USD looks vulnerable and a consolidation below 1.1815 would set the stage for further weakness. Rejection from levels above 1.1900, the upper limit of a wide range, could accelerate. A daily close below 1.1780 (20-day moving average) could target 1.1700.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
