- EUR/USD testing day highs at 1.1860 after bouncing at 1.1825 lows.
- The euro remains strong despite the sluggish EU business activity data.
- EUR/USD unlikely to test 1.1900 – UOB.
The euro’s bearish correction seen earlier during the early North American session has been contained at 1.1825 and the pair bounced up again to test intraday highs at 1.1860.
Euro resumes its uptrend as risk aversion eases
The common currency has shrugged off the sluggish eurozone data and the increase of COVID-19 infections in the continent and remains positive against the US dollar. The greenback has been on the back foot most of the week amid the uncertainty about the outcome of the US Presidential elections and the lack of progress on the coronavirus stimulus negotiations.
The macroeconomic calendar, however, has not been supportive of the euro as the preliminary Eurozone business activity has shown mixed figures. Despite the larger than expected increase in the manufacturing index, services sector activity has contracted further, with Germany and France showing weaker than expected prints, which suggests that the second COVID-19 wave might be affecting the incipient economic recovery.
EUR/USD unlikely to test 1.1900 – UOB
Despite the near term positive trend, the FX analysis team at UOB sees few chances that the EUR/USD might test the 1.1900 level: “We highlighted yesterday that ‘further EUR strength is unlikely’ and expected EUR to ‘consolidate within a 1.1820/1.1885 range’. While EUR did not strengthen further, it traded within a narrower range than expected (1.1810/1.1866). The current price action is still viewed as part of a consolidation phase. That said, the weakened underlying tone suggests EUR could drift lower within a lower trading range of 1.1790/1.1850.”
Technical levels to watch
|Today last price||1.186|
|Today Daily Change||0.0042|
|Today Daily Change %||0.36|
|Today daily open||1.1818|
|Previous Daily High||1.1867|
|Previous Daily Low||1.1811|
|Previous Weekly High||1.1827|
|Previous Weekly Low||1.1688|
|Previous Monthly High||1.2011|
|Previous Monthly Low||1.1612|
|Daily Fibonacci 38.2%||1.1833|
|Daily Fibonacci 61.8%||1.1846|
|Daily Pivot Point S1||1.1797|
|Daily Pivot Point S2||1.1777|
|Daily Pivot Point S3||1.1742|
|Daily Pivot Point R1||1.1853|
|Daily Pivot Point R2||1.1888|
|Daily Pivot Point R3||1.1909|
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.