(Kitco News) - EUR/USD has just broken a massive support zone from early 2017. There has been a fresh wave of selling pressure in the pair as the U.S. dollar strengthened this morning. Interestingly it didn't affect gold as much as all the major FX pairs. The yellow metal is still hovering above the $1800/oz area. There has been some PMI data out this morning but it was largely in line with analyst and economist expectations. Traders seem to be trimming their bets on the ECB raising interest rates as fast as the Fed due to inflationary and growth pressures in the Eurozone. The German 2-year government bond yields fell this morning and the 10-year has also moved lower too.
The chart weekly chart below shows the movement in the EUR/USD pair which is not trading 1.28% lower below the 1.03 handle.
To look for the next support the monthly chart would have to be analyzed. There is another level at the psychological 1.00 level. Understandably at 1.01, there has been some static price action in the past too. For now, on the chart above (weekly) it will be important to see if there is a test and rejection of the level that has just been taken out to the downside at 1.0352.
