EUR/USD erases gains, drops toward 1.1300 as Wall Street turns negative

• A deterioration in market sentiment boosts the US dollar.
• EUR/USD remains in recent range, now with a bearish intraday bias.

The EUR/USD retreated further from the 1.1360 area and dropped to 1.1320, erasing daily gains. The move lower took place amid a deterioration in market sentiment that boosted safe-haven assets.

DXY turns positive, still in range

The US dollar gained momentum during the American session as US stocks indices turned negative. The Dow Jones is falling 0.17% and the Nasdaq drops 0.57% after opening in positive territory.

Headlines about the crisis in Ukraine sent equity markets lower. Ukraine announced a state of emergency starting at midnight for 30 days and after the US warned of a full-scale Russian invasion within 48 hours.

The DXY is now up 0.03% after holding in negative ground most of the day. The index is moving toward the upper limit of the current range. Like the DXY, the EUR/USD continues to move sideways in the short term around 1.1330.

A daily close below 1.1300 should point to further weakness while if it rises above 1.1400, the euro would gain strength.

Technical levels