EUR/USD extends slide to lowest since January, eyes 1.0500
- The Euro accelerates its decline across the board.
- The US dollar remains firm, with the DXY reaching a fresh cycle high above 106.60.
- The EUR/USD is oversold but shows no signs of relief.
The EUR/USD pair accelerated its decline after the beginning of the Asian session and dropped to 1.0509, reaching the lowest level since January. It remains near these lows, under pressure, as the US Dollar continues to hold firm, extending its rally.
Euro weakenss across the board, as DXY hits new highs
The EUR/USD broke below 1.0530, and the decline gained momentum, with the pair now targeting the 1.0500 area. Below, the next level to watch is the year-to-date low at 1.0483.
The negative momentum of the Euro has intensified, without a particular catalyst driving the decline in the past few hours. EUR/GBP has retreated from 0.8700 to 0.8660, while EUR/CHF is reversing from two-month highs. EUR/JPY is also falling, approaching 147.00.
On the other hand, despite being up for the fourth consecutive day, the US Dollar Index (DXY) maintains its momentum. It reached a fresh 2023 high at 106.64. The Greenback continues to be supported by US Treasury yields and market sentiment. Stocks in Wall Street opened positively but quickly trimmed their gains after the initial surge.
US data came in above expectations, with Durable Goods Orders rising by 0.2% in August, contrary to expectations of a 0.2% decline. German and Spanish inflation data are due on Thursday.
Technical levels