EUR/USD recovers from five-week lows to the 1.1020 zone
|- Greenback loses momentum across the board and favors EUR/USD recovery.
- Pair still faces downside pressure but it seems alleviated while above 1.1000.
The EUR/USD pair bounced from near the lowest level since early October and climbed to 1.1020, hitting a fresh daily high. As of writing, trades at 1.1015 about to post the second daily gain out of the last nine trading days.
The greenback weakened amid lower US yields. The 10-year dropped to 1.80%, reaching the lowest since November 7, moving away from the 2% area. Many officials from the Federal Reserve, including Chairman Powell spoke in public today offering no surprises and did not alter policy expectations significantly.
Market participants also ignored US data. The PPI index for October came in modestly below expectations. Tomorrow in the Eurozone inflation and trade data are due while in the US the key report will be retail sales.
Levels to watch
The euro offered the first sign of a potential bottom near 1.1000. It is recovering ground but so far limited by 1.1020 and moving very slowly suggesting that there still is some bearish potential. A close below would clear the way to more weakness ahead. The next strong support stands around 1.0975. On the upside, the next resistance might be seen at 1.1025; above more gains ahead seem likely. The next resistance stands at 1.1045.
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