EUR/USD tumbles to 1.1800 as the US dollar reverses sharply

The EUR/USD fell sharply almost a hundred pips in a few minutes from the 1.1900 area to 1.1799, hitting the lowest level since November 12. It then re  |  23/11/2020 16:28
  • US dollar soars across the board after US economic data.
  • EUR/USD drops from near key medium-term resistance to weekly lows.

The EUR/USD fell sharply almost a hundred pips in a few minutes from the 1.1900 area to 1.1799, hitting the lowest level since November 12. It then rebounded modestly and as of writing, it trades at 1.1815, 40 pips lower than Friday’s close.

The move lower took place on the back of a rally of the US dollar across the board following the release of the US Markit PMI preliminary report for November. The index showed an unexpected increase to the highest level in years.

The greenback started to gain momentum, making a dramatic reversal. The DXY stands now near weekly tops, after testing the 92.00 area hours ago. US yields hit fresh highs, helping the dollar.

From a technical perspective, the EUR/USD looks vulnerable and a consolidation under 1.1815 would set the scenario to more weakness. The rejection from levels above 1.1900, the upper limit of a wide range, could accelerate. A daily close under 1.1780 (20-day moving average) could target 1.1700.

Technical levels

 

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