The EUR/USD pair dropped below 1.1160 and bottomed at 1.1136, the lowest level since August 5. The combination of a stronger US Dollar across the board and a weaker Euro contributed to the slide of EUR/USD under a critical support level.
The US Dollar is up today across the board and particularity against commodity and emerging market currencies amid fears about the global economic outlook. Concerns increased amid recessions fears in the US and Europe. The common currency is also down versus the Pound and the Swiss franc weakened by EZ data and lower yields.
The greenback is up even despite lower US yield. The 10-year stands at 1.58%, the lowest since 2016. In Wall Street, the DOW JONES is losing 2.35% and the NASDAQ drops 2.69%. The DXY gains 0.12% and trades near 98.00, at fresh one-week highs.
From a technical perspective, the recent move in EUR/USD adds to the negative perspective of the Euro. The pair is holding below 1.1150/60, the lower limit of the one-week range. A confirmation of the breakout would signal more losses ahead. The next support is seen at 1.1110 that protects 1.1100.
On the upside, the Euro needs to rise back above 1.1160 to alleviate the short-term bearish pressure. If that happens it would likely resume range trading between 1.1150 and 1.1245.