/EUR/USD looks to close third straight day lower as greenback strength persists | by Eren Sengezer | FXStreet

EUR/USD looks to close third straight day lower as greenback strength persists | by Eren Sengezer | FXStreet

EUR/USD extends losses below 1.20 on Tuesday. DXY steadies above 92. The pair drops more than 100 pips in the last two days. After failing to break above the 1.2090 resistance last Thursday, the EUR/USD pair started a corrective drop and remains on track to close the third straight day with losses. As of writing, the pair was trading at 1.1933, losing 0.3% on the day. The pair’s price action continues to be driven by the USD strength. The US Dollar Index on Tuesday rose to its highest level in ten days at 92.36 as investors ignored relatively weak macroeconomic data releases from the United States. The NFIB Optimism Index in December dropped to 104.9 from 107.5 and the JOLTS Job Openings failed to meet the market expectation of 6.04 million as it came in at 5.9 million. Another record-setting rally by the major equity indexes in the U.S. on Tuesday is keeping the risk appetite high, hurting the demand for the safe-haven US T-bonds and boosting their yields. With the 10-year T-bond yield gaining more than 2% on the day, the DXY is preserving its bullish momentum. As of writing, the index was up 0.25% at 92.30. The macroeconomic calendar won’t be offering any significant data releases from the euro area on Wednesday and investors will be following the Import/Export Price Index and Wholesale Inventories figures from the United States. Technical outlook Valeria Bednarik, American Chief Analyst at FXStreet, writes, “in the 4 hours chart, the 20 SMA gained downward strength above the current level, while the price struggles around a bullish 100 SMA, also with the 50% retracement of the last three-week rally.  In the same chart, technical indicators reached oversold conditions, with the Momentum aiming to bounce but the RSI still heading lower, currently at 27, in line with additional declines ahead toward 1.1875, the 61.8% retracement of the mentioned rally.” According to the analyst, technical supports for the pair could be seen at 1.1910, 1.1875 and 1.1830 while resistances align at 1.1960, 1.2000 and 1.12030.