EUR/USD holds onto daily losses above 1.1800
- US dollar recovers modestly on Thursday, DXY rises toward 93.00.
- EUR/USD consolidating around 1.1820, falls after a four-day rally
The EUR/USD is consolidating modest daily losses after posting on Wednesday the highest daily close in more than a month. A rebound of the US dollar across the board weakened the pair that is moving sideways around 1.1820/30.
The euro bottomed after the beginning of the American session at 1.1810, the lowest level in two days, but it quickly rose back to the 1.1825 area. During the last hours, it has been consolidating, amid a quiet session in financial markets.
In Wall Street, main stock indexes are posting mixed results. Expectations about a new round of fiscal stimulus support risk appetite, but the lack of agreement and definitions clouds the outlook. The US dollar index is up by 0.3%, recovering from monthly lows supported by higher US yields.
Economic data from the US surpassed expectations, with a larger than expected decline in jobless claims to the lowest since April and a sharp rise in Existing Home Sales in September. In the Eurozone, the Consumer Confidence Index in October (preliminary) dropped from -13.9 to -15.5.
EUR/USD still above key trendline
From a technical perspective, the key resistance for the next hours could be seen at 1.1840, a horizontal level and also the 20-hour moving average. A break higher could lead to a test of daily highs at 1.1865. On the flip side, a consolidation under 1.1820 would expose 1.1800.
On a wider perspective, EUR/USD still has a bullish bias that will likely remain in place as long as it trades above an uptrend line, today seen at 1.1735.
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.
