EUR/USD: Bounce from recent lows looks to have ended


  • EUR/USD dropped on Monday, ending a corrective bounce from six-week lows. 
  • The single currency looks south on weak German data, virus concerns. 
  • Risk sentiment has weakened on worries about US fiscal stimulus. 

EUR/USD's bounce from six-week lows may have run out of steam, and the currency pair face more substantial selling pressure in the near-term. 

"Euro's decline from 1.2183 to 1.2117 on weak German IFO data [released on Monday] suggests early correction from last Monday's 6-week bottom at 1.2055 has possibly ended at 1.2190 (Friday)," analysts at AceTrader said in their daily recommendations note. 

Germany's IFO Expectations index decreased to 91.1 in January, missing the consensus forecast of 93.2 and signaling pessimism in the German business community amid the resurgence of the coronavirus crisis. 

As such, EUR/USD suffered losses on Monday despite the six basis point drop in the US 10-year Treasury yield. The currency pair remains sidelined near 1.2140 at press time, alongside losses in the US stock futures. 

Concerns about new strains of the deadly virus and skepticism about the new US President Joe Biden's ability to get the $1.9 trillion fiscal stimulus plan approved by Congress have weakened the risk sentiment. 

These factors, coupled with the Italian political uncertainty and relatively low Eurozone inflation expectations, could weigh over the common currency. 

A close under 1.2117 would confirm a reversal lower and pave the way for a re-test of 1.2077-1.2055, according to AceTrader. Both the Eurozone and the US data calendar is light on Tuesday, which leaves the pair at the mercy of the broader market sentiment

Technical levels

EUR/USD

Overview
Today last price 1.214
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.2142
 
Trends
Daily SMA20 1.2194
Daily SMA50 1.2119
Daily SMA100 1.1945
Daily SMA200 1.1648
 
Levels
Previous Daily High 1.2183
Previous Daily Low 1.2116
Previous Weekly High 1.219
Previous Weekly Low 1.2054
Previous Monthly High 1.231
Previous Monthly Low 1.1924
Daily Fibonacci 38.2% 1.2142
Daily Fibonacci 61.8% 1.2158
Daily Pivot Point S1 1.2111
Daily Pivot Point S2 1.208
Daily Pivot Point S3 1.2043
Daily Pivot Point R1 1.2178
Daily Pivot Point R2 1.2214
Daily Pivot Point R3 1.2245

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Forex MAJORS

Cryptocurrencies

Signatures