EUR/USD crashes below 1.1200, the lowest level since early April and not far from the 2019 trough of 1.1176. Below 1.1176, the world's most popular currency pair is back to levels seen in June 2017, 22 months ago. 1.1115 and 1.1025 are next down the line. Resistance awaits at 1.1210 and 1.1260 that the pair visited earlier. The bearish trend resumed earlier, and it has now caught fire.
The US Dollar is on the rise after traders have returned from the long Easter break. The monetary policy divergence between the US and the rest of the developed world boosts the greenback across the board. The most recent US indicator, New Home Sales, came out at 692K annualized, better than had been expected and showing that America's housing sector has overcome the temporary slowdown.
The upbeat US data contrasts weak European data. The most striking figure was Markit's German Manufacturing PMI which showed deep contraction in what is considered the continent's locomotive. The most recent number from the euro-zone showed consumer confidence dropping to -7.9 points, reflecting growing pessimism. Euro-zone finance ministers are especially concerned about Italy, the third-largest economy.
The downfall of EUR/USD as seen in the 15-minute chart:
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US GDP growth due later this week is set to show substantial growth in the world's largest economy, outshining the sluggish economies of the old continent.
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