EUR/USD extends slide toward 1.1600 as DXY rises above 94.00
- US dollar soars even as US yields drop modestly.
- EUR/USD eyes 1.1600, heads for lowest close in more than a year.
The EUR/USD dropped further and printed a fresh 11-month low at 1.1614. It remains under pressure, near the bottom, with the US dollar gaining strength across the board.
The driver of the big drop in EUR/USD continues to be the rally of the dollar. No particular fundamental report on Wednesday helped the greenback. US yields are modestly lower, with the 10-year at 1.50%. In Wall Street, the Dow Jones gains 0.60% and the Nasdaq 0.78%. So, neither higher yields nor risk aversion are present for the moment.
The DXY broke above 94.00 and jumped to 94.23, the highest since November of last year. It is up by 0.50%. Gold and silver are plummeting.
Looking at 1.1600/05
The EUR/USD is falling for the fourth day in a row and it is headed toward the lowest daily close since July 2020. The next strong support seen is seen in the 1.1600/05 area. The key short-term resistance is now 1.1660 and a recovery above would alleviate the bearish pressure.