EUR/USD has tumbled below 1.18, hitting the lowest levels since early April – a three-month low. The main driver is dollar strength, which comes ahead of the Federal Reserve’s release of its meeting minutes from its hawkish June decision.
The next support level is 1.1785, which was a resistance line at the end of March. It is followed by 1.1745, a cushion from early April, and then 1.17, a critical level that held euro/dollar from falling back in March.
The Relative Strength Index on the four-chart is still holding above 30 at the time of writing, indicating that there is more room for falls.
It is essential to note that dollar strength comes despite a sharp drop in US yields. Returns on 10-year Treasuries has fallen to 1.30%, the lowest since February. Moreover, US JOLTs job opening missed estimates with 9.209 million in May, below 9.3 million expected. The softness in the labor market implied by the figure seems to have no impact on the dollar.
