EUR/USD hits three-week lows and tests the critical 1.0100 area amid a stronger dollar
- US Dollar rises across the board during the American session.
- EUR/USD under pressure, testing critical support.
- Break under 1.0100 could trigger a test of parity.
The EUR/USD dropped sharply during the American session and hit at 1.0107, the lowest level since July 27. It remains near the lows, under pressure amid a stronger Us dollar across the board.
The greenback strengthened even as US yields remained steady and also as stocks in Wall Street sideways. The DXY is up 0.55%, at monthly highs near 107.30.
Regarding economic data, the weekly report showed Initial Jobless Claims declined to 250K, below market consensus; the Philly Fed jumped to 6.2 in August from -12.3, also surpassing expectations. On the negative front, Existing Home Sales tumbled to 4.81M, posting the sixth monthly decline in a row.
Short-term outlook
The EUR/SD is facing increasing bearish pressure and is near a critical support at 1.0110. A break below 1.0100 would expose the parity level, ending with weeks of a range. The bearish pressure in the short-term will likely persist while under 1.0135.
The euro needs to recover 1.0135 to avoid more losses. The next resistance stands at 1.0160 followed by the strong barrier near 1.0200.