EUR/USD finds some support ahead of mid-1.1200s amid a modest USD pullback

Haresh Menghani FXStreet

• The shared currency remains depressed amid slowdown fears in the region’s core economies.
• A modest USD profit-taking lends some support and eases the prevalent bearish pressure.

The EUR/USD pair reversed an early European session dip to fresh 2019 lows and quickly recovered around 25-30 pips, albeit lacked any strong follow-through.

The pair extended its bearish trajectory from levels beyond the key 1.1500 psychological mark and lost some additional ground on Tuesday. The pair fell to an intraday low level of 1.1258 - the lowest level since Nov. 13, albeit managed to find some support at lower levels amid a modest US Dollar pull-back.

Despite a follow-through uptick in the US Treasury bond yields and news of the deal to avert a fresh government shutdown, the greenback failed to capitalize on the recent rally to multi-week tops and was seen as one of the key factors that extended some support to the major, at least for the time being.

The uptick, however, lacked any strong conviction and remained capped amid growing market concerns about the health of the Euro-zone's economic growth, further reaffirmed by Bundesbank President Jens Weidmann's comments this Tuesday, which now seems to have pushed the ECB's planned rate hike to 2020.

Hence, it would be prudent to wait for a strong follow-through recovery before confirming that the pair might have formed a near-term bottom and positioning for any further near-term appreciating move as the focus now shifts to scheduled speeches by several FOMC officials, including the Fed Chair Jerome Powell.

Technical levels to watch

EUR/USD

Overview:
    Today Last Price: 1.1278
    Today Daily change %: 0.02%
    Today Daily Open: 1.1276
Trends:
    Daily SMA20: 1.139
    Daily SMA50: 1.1398
    Daily SMA100: 1.1421
    Daily SMA200: 1.1541
Levels:
    Previous Daily High: 1.1332
    Previous Daily Low: 1.1267
    Previous Weekly High: 1.1462
    Previous Weekly Low: 1.132
    Previous Monthly High: 1.1586
    Previous Monthly Low: 1.1289
    Daily Fibonacci 38.2%: 1.1292
    Daily Fibonacci 61.8%: 1.1307
    Daily Pivot Point S1: 1.1252
    Daily Pivot Point S2: 1.1228
    Daily Pivot Point S3: 1.1188
    Daily Pivot Point R1: 1.1316
    Daily Pivot Point R2: 1.1356
    Daily Pivot Point R3: 1.138

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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