EUR/USD drops toward 1.1200 amid a stronger dollar

EUR/USD moved off daily highs and dropped back below the 20-hour moving average, but still remains above 1.1200. The pair peaked at 1.1260 and recently hit a fresh low at 1.1210. It was trading at 1.1211/16, 20 pips below yesterday’s closing price.

The intraday tone is now bearish and a break below 1.1210 would expose 1.1200. Greenback gained momentum during the last hours across the board as stocks decline in Wall Street with the Dow Jones near 18,000 and amid rising US bond yields.

Technical levels

In the short-term, to the upside, resistance levels could be located at 1.1260/65 (daily high), 1.1285 (Sept 09 high) and 1.1300 (psychological). On the opposite direction, support could be seen at 1.1195 (Sept 09 low), 1.1180 (Sept 05 high) and 1.1140 (Sept 04  & 05 low).