- The euro retreats from 1.1280 and approaches day lows at 1.1215.
- The USD appreciates after better than expected US macroeconomic data.
- EUR/USD: Breach of 1.1170 will accelerate losses – UOB.
The euro is pulling lower against the USD, reversing earlier gains after a strong weekly opening. The pair appreciated from a 1.1215 opening price to session highs at1.1280, where the pair found resistance before pulling back to 1.1230 area with the US dollar strengthening across the board.
The euro loses ground with the US dollar on recovery
The common currency opened the day on firm footing, buoyed by brighter market sentiment. Better than expected industrial profits in China boosted hopes of economic recovery during the Asian session, offsetting fears of a second COVID-19 wave. Furthermore, the stronger than expected German inflation has contributed to the euro appreciation.
The upward trend came to an end during the North American session. A string of upbeat US macroeconomic data, with the US pending home sales and Fed Manufacturing Index posting better than expected readings have boosted demand for the USD, which bounced up against its main peers.
EUR/USD: Breach of 1.1170 will accelerate losses – UOB
The FX strategy team at UOB warns about a breach of the 1.1170 level, that might accelerate the downtrend, “While downward pressure has ticked up over the past couple of days, EUR has to close below 1.1170 before a more sustained weakness in EUR can be expected.”
EUR/USD key levels to watch
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