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Title: EUR/USD resumes the downside and targets the 2022 low


Jul 11, 2022 03:54 AM ET


By: AnalysisWatch


The European currency comes under renewed and quite strong downward pressure and pulls EUR/USD back toward the 1.0100 region on Monday.


EUR/USD is on the defensive at the beginning of the week, posting losses for the third week in a row against the backdrop of the U.S. dollar, which is strengthening strongly again.


Further gains in the greenback are accompanied by expectations of a continuation of the Federal Reserve's rate hike cycle after the US labor market data for June (+372,000 jobs) was again very good. At the same time, these results seem to have softened the excitement about a possible "hard landing" of the U.S. economy.


In the German money market, yields on 10-year bunds fell somewhat on Monday in line with developments in the U.S. bond market.


So far, it is 0.76% lower at 1.0108, facing resistance at 1.0071 (2022 low of July 8), 1.0060 (low of December 11, 2002) and finally 1.0000 (psychological mark). On the upside, a break above 1.0528 (55-day SMA) would target 1.0615 (weekly high of June 27) en route to 1.0773 (monthly high of June 9).


Key events in the euro area this week: Germany, EMU ZEW Economic Sentiment (Tuesday) – Germany Final Inflation Rate, EMU Industrial Production (Wednesday) – EMU Balance of Trade (Friday).

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