EUR/USD prints fresh one-month lows near 1.0850

EUR/USD prints fresh one-month lows near 1.0850

Time Stamp: May 12, 2023 7:22 PM
Source Node: 2647105

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  • US Dollar heads for important weekly gains across the board.
  • Higher US yields and weaker sentiment weigh on EUR/USD.
  • The pair is having its worst week since September 2022.

The EUR/USD is falling on Friday, the fourth time in the last five days, extending its weekly losses. The pair is hovering near 1.0850, at the lowest level in a month, consolidating a weekly loss of more than 150 pips.

The key driver is a stronger US Dollar across the board. The combination of a cautious tone in equity markets and higher US yields is boosting the Greenback.

The US Dollar Index is up by 0.60% on Friday, trading above 102.50, at the highest level in a month. The Dow Jones is down by 0.31% and the Nasdaq is dropping by 0.53%. The US 10-year stands at 3.44% and the 2-year is approaching 4%.

Short-term outlook

The Euro is having its worst week against the US Dollar since September 2022 so far. The short-term bias for EUR/USD is bearish. “The 1.0800 level is the natural immediate support, en route to 1.0745, the 61.8% retracement of the 2022 yearly decline. A break below the latter should open the door for a long-term USD rally. The 1.0980/1.1000 area will be a tough bone to break now, although if the pair manages to recover above it, 1.1100 is a possible target”, said Valeria Bednarik, Chief Analysts at FXStreet. 

Technical levels 

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