Yesterday saw a number of markets drop sharply and we have seen some good downside follow-through so far into today's early European session. Even the mighty Nasdaq 100 futures took a hit, after a relatively narrow tech-led rally pushed the benchmark to fresh record highs.
EUR/USD Price forecast: Hits lows at 1.1620 on risk aversion, high Oil prices
The US dollar and Treasury yields continue climbing toward fresh yearly highs, pressuring both the euro and gold as markets start to price in risk-off sentiment driven by rising inflation and profit-taking across technology-led rallies.
Euro: Technical break points to 1.160 test versus US Dollar – ING
EUR/USD Price Forecast: Near-term bias turns negative on breakdown below 1.1655
The trading week is almost over and, so far, EUR/USD has started to show a three-session bearish streak, accumulating a loss of more than 0.8% in the short term. This behavior has begun to reflect a relevant bearish bias once again, driven by the continued recovery in US dollar strength, leaving the euro in a weaker short-term position.
EUR/USD is bouncing from 1.17 support but remains trapped in a tight range ahead of Friday's US jobs report and ongoing bond-market volatility.
European currencies have moved into a corrective phase following recent gains, while market participants focus on upcoming macroeconomic data from the UK, the eurozone and the United States. After a strong upward move, both currencies returned to their previous trading ranges, signalling a shift towards consolidation ahead of important economic releases.
EUR/USD Price Forecast: Remains above 1.1700 near 50-day EMA
Euro: Trading mildly softer against US Dollar – Scotiabank
The Euro managed to break above the resistance level of the triangle formation to meet the first target at 1.8000. Resistance at 1.1800-35 caused a drop while supports at 1.1600 could create a trading zone.
Euro: Range trading against US Dollar in low vol regime – ING