EUR/USD weaker, turns negative near 1.1830


  • EUR/USD loses the grip and recedes to 1.1815/10 band.
  • Dovish ECB-speak weighs on the single currency.
  • US NY Empire State Index ticked lower to 6.50 in November.

Following earlier daily tops in the 1.1870 region, sellers stepped in and dragged EUR/USD to as low as the 1.1815/10 band as Monday’s European session draws to a close.

EUR/USD offered on ECB-speak

EUR/USD trades slightly in the negative territory after ECB-speak showed members continue to favour further easing in the short-term horizon.

In fact, ECB’s Board member De Cos reiterated the upcoming recalibration of the bank’s policy tools should be focused on the PEPP and TLTROs, adding that FX moves is something to worry about.

Earlier, Board member Centeno said that public support should be temporary in the current pandemic context.

In the same direction, Bundesbank officials did not rule out that the German economy could shrink/stagnate in the October-December period. And the icing on the cake came from Hungary’s Orban, who said the country will veto the EU budget and Recovery Fund vote.

What to look for around EUR

EUR/USD extends further north the recent breakout of the 1.18 mark at the beginning of the week. In the very near-term, however, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the coronavirus pandemic. On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.

EUR/USD levels to watch

At the moment, the pair is losing 0.02% at 1.1832 and faces the next support at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4). On the upside, a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.

EUR/USD News

GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.

GBP/USD News

Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures