EUR/USD hits four-week lows, downside limited by 1.1070
- DXY drops modestly remain in the recent range, near monthly highs.
- The euro is the worst performer among European currencies of the American session.
The EUR/USD pair dropped to 1.1069 during the American session, hitting the lowest level since December 24. Then it rebounded and as of writing, it stands at 1.1085, around the same level it closed on Tuesday.
While other currencies such as the pound, the yen and the Swiss franc have appreciated against the US dollar over the last hours, the euro remained flat, unable to benefit from a somewhat weaker US dollar on the day before the European Central Bank meeting.
The greenback is posting mixed results. The DXY falls moderately and it trades at 97.60, still near recent tops. Lower US yields weigh on the US dollar that is still higher versus commodity currencies. A sharp rally in USD/CAD after the Bank of Canada meeting, probably weakened AUD/USD and NZD/USD.
Levels to watch
Despite hitting the lowest intraday level in almost a month, the EUR/USD rebounded quickly as it remains unable to hold under 1.1080. If it successfully consolidates below the motioned level, more losses seem likely. The next support might be located at 1.1065 and then at 1.1040.
In the short term, EUR/USD is trading sideways. Before bottoming, it printed a fresh high at 1.1097. The 1.1100 area is the immediate resistance, followed by 1.1120.