EUR/USD under pressure: hits 2-week lows below 1.2300
- Spot breaks below 1.2300 and falls under the 20-SMA.
- USD up across the board as Wall Street rises.
The EUR/USD pair accelerated the decline during the last hours. It broke below 1.2300 and dropped quickly to 1.2280, reaching the lowest level since January 23. The pair is under pressure trading below key technical levels, suggesting that further losses are likely.
A stronger US dollar boosted EUR/USD to the downside. The greenback gains as Wall Street rises sharply. The Dow Jones was up 0.98% and the S&P 0.75%. Crude oil was falling sharply, with the WTI down 2.30% a barrel.
The greenback was rising even against commodity currencies. The latest round of US data and recent comments from Fed’s officials could be offering support to the USD. Recently, Fed's Evans, a dissenter at the December rate hike meeting, said that his decision was a close call and added that if inflation picks up, he would support further rate hikes. Speculations about four rate hikes during 2018 are rising among market participants.
Levels to watch
EUR/SUD bottomed at 1.2276 and it was hovering at 1.2280. A close around current levels would be the first under the 20-day moving average (1.2315) since mid-December. If the slide extends under 1.2280, supports might be seen at 1.2255 and 1.2210/15 (Jan 22).
On the upside, 1.2310 is now the immediate resistance followed by 1.2360. The euro needs to break above 1.2400/10 (20-SMA in four hours chart) to remove the short-term bearish pressure.