EUR/USD Falls Further Below 1.0200 After U.S. Data
Alex Boltyan | Jul 06, 2022 01:53PM ET
The EUR/USD pair continues to hit fresh multi-decade lows on Wednesday as the greenback strengthened across the board following upbeat services PMI data for the US economy. Global recession fears continue to haunt the market participants that seek refuge in safe havens. At the time of writing, the pair is struggling around 1.0180, having struck a low of 1.0161.
The US services PMI measured by ISM came at 55.3 above the 54.5 expected by the market but showed a slowdown from May’s reading of 55.9. Across the pond, the Eurozone published mixed data with a modest advance in May in retail sales, but a decrease in Germany’s factory orders by 3.1% in the same month.
The US dollar measured by the DXY index stands near the 107.00 level, reaching its highest level since December 2002, helped by the bounce in bond yields. Investors will keep an eye on the FOMC minutes from the June meeting, which will be released during the American session.
According to the daily chart, the EUR/USD holds a clear bearish short-term perspective operating below its main moving averages and with technical indicators in negative territory. The RSI is already exhibiting oversold conditions, which could favor a breather for the euro before another leg south.
On the downside, a break below the 1.0160 area would expose the 1.0100 psychological level en route towards parity. On the other hand, the EUR/USD pair could go through some consolidation, with immediate resistance at the 1.0300 area, followed by the former cycle low at 1.0349.
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