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EUR/USD depressed around 1.1850, USD stays strong

5/9/2018, 1:52:07 PMBasics of Trading
EUR/USD depressed around 1.1850, USD stays strong

The solid demand for the greenback keeps weighing on EUR/USD, which is now trading in the area of recent lows in the mid-1.1800s.

EUR/USD looks to data, yields

Spot is prolonging the downside and keeps trading in levels last seen in late December 2017 in the mid-1.1800s, recording at the same time fresh 2018 lows.

On the other hand, the greenback extends its march further north of the 93.00 milestone when tracked by the US Dollar Index (DXY), or fresh yearly peaks. Furthermore, yields of the key US 10-year note climbed to levels just below the 3.0% handle, adding to the buck’s solid momentum.

Spot remained apathetic after President Trump announced on Tuesday the US is withdrawing from the Iran deal, as the news was almost priced in by market participants. Trump, however, left the door open for further negotiations with Iran.

In the data space, US Producer Prices are only noteworthy later today ahead of the speech by Atlanta Fed R.Bostic (voter, centrist).

EUR/USD levels to watch

At the moment, the pair is losing 0.14% at 1.1848 and a break below 1.1839 (2018 low May 8) would open the door to 1.1768 (78.6% Fibo of November-February up move) and finally 1.1718 (monthly low Dec.12 2017). On the other hand, the next upside barrier aligns at 1.1984 (10-day sma) seconded 1.2018 (200-day sma) and finally 1.2153 (low Mar.1).