EUR/USD approaches 1.0800 in a day of limited runs

• Germany’s ZEW survey shows improvement in economic sentiment.
• The dollar rises modestly in the market on Tuesday.
• EUR/USD with a slightly bearish intraday bias, and support in the 1.0800 area.

The EUR/USD is moving sideways on Monday, in a small range above 1.0800. The pair is trading close to intraday lows at 1.0810, with a slightly bearish bias, in a day of calm in the financial markets.

Hours ago, the EUR/USD rose to a high of 1.0837, before changing direction. Rides are being limited, in line with what happens with most currency pairs.

The EUR/USD decline is behind a modest rise in the dollar, which tries to recover from lows in months. Following Monday’s Wall Street holiday, bond yields confirm Friday’s rebound, supporting the greenback. The main European stock indices and the futures of the Americans are falling.

The ZEW index of economic sentiment for Germany in January had a great recovery going from -23.3 to 16.9, exceeding the -15.5 expected. The current situation index improved from -61.4 to -58.6, below the -57 market consensus.

In the US, the Manufacturing Empire will be published and the Treasury will place debt at 3 and 6 months. On Wednesday, the final reading of Eurozone inflation for December will be released and several US reports will be out, including industrial production and retail sales. Also, to note tomorrow, the Bank of Japan will announce its monetary policy decision.

Panorama

The dominant trend is still bullish and solid. The current reversal of the EUR/USD is limited, although on the four hour chart the bearish signals are beginning to gain strength. A break of 1.0800 would expose the next support which is located around 1.0770.

On the upside, if confirmed above 1.0835, the euro could gain momentum to go looking for the 1.0865 area and then the focus will go to the maximum in months reached at the beginning of the week at 1.0873 and the 1.0900 area.

technical levels