EUR/USD finds resistance below 1.1870 and trims gains
- Euro pulls back, market participants digest new ECB strategy.
- EUR/USD losses momentum slides under 1.1850.
The EUR/USD peaked at 1.1868, the highest level in two days earlier on Thursday following the release of the new strategy from the European Central Bank. Then, the greenback recovered ground and then pulled back under 1.1850.
As of writing, TER/SU trades at 1.1838/40, up 50 pips for the day and far from the recent bottom. The rebound of the euro took place after the European Central Bank set a new 2% symmetric inflation target and announced it would tolerate temporarily exceeding the target. The Swiss franc was the biggest gainer from the announced will the yen is the top performer amid risk aversion.
Mains stock indices in the US and Europe and falling considerably, however off lows. During the last hours, market sentiment improved, boosting a recovery in stocks and commodities. US yields are of lows but still near the monthly lows. The US 10-year stands at 1.29%, on its way to the lowest close since February but away from the 1.24% of hours ago.
Short-term levels
From a technical perspective, the recovery of EUR/USD lost strength after being unable to hold above the 1.1860 zone. On the downside, the immediate support is seen at 1.1830 and then 1.1815 (20-hour moving average). A slide below would expose 1.1800 that if broken should lead to a test of 1.1780 (Jul 7 low).
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
