EUR/USD recovers further, still under 1.1600
- Euro extended its recovery from weekly lows against the US Dollar but remains in negative.
- Price showing signals of consolidation but the overall tone still points to the downside.
The EUR/SUD pair moved to the upside during the American session on the back of a retreat of the US dollar across the board. The euro bottomed earlier at 1.1529 and since then rose more than 50 pips.
It was hovering around session highs at 1.1585, slightly below the 20-hour moving average that stands at 1.1585/90. A break higher could add more positive momentum in the very short-term to the euro.
The US dollar lost strength in the market after a positive opening following escalating US-China trade tensions and after ECB President Mario Draghi spoke about the “patience” on determining the first rate hike and also mentioned that a significant monetary accommodation was still needed. US Housing data came in mixed having no lasting impact. On Wednesday, more ECB board members will deliver speeches in Portugal while in the US more housing data is due.
EUR/USD levels to watch
To the upside, resistance levels might be located at 1.1585, followed by 1.1625 and 1.1645 (Jun 19 high). On the downside, support could be seen at 1.1545, 1.1530 (Jun 19 low) and 1.1510 (May low).
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.
