EUR / USD bounces back to 1.2200 level

  • The EUR / USD attracted some buying on the dips near the 1.2130 region and reduced intraday losses.
  • New nerves from the coronavirus propped up the dollar as a safe haven and could limit the rise.

The pair EUR/USD it has managed to bounce around 70 pips from the daily lows, with the bulls making another attempt to take advantage of the momentum beyond the 1.2200 mark.

The pair opened with a bearish gap on the first day of a new trading week and continued to lose ground during the first half of the European session. The bearish momentum pushed the EUR / USD away from the more than two-and-a-half-year highs set on Thursday and was solely sponsored by a broad-based strength in the US dollar.

The discovery of a new variant of the highly contagious coronavirus disease shook global financial markets and largely countered the news that an agreement had finally been reached on a long-awaited US stimulus bill. This, in turn, provided a strong boost to the dollar as a safe haven and put heavy pressure on the EUR / USD pair.

Meanwhile, the flow of risk aversion caused US Treasury yields to drop sharply and kept any further gains for the dollar in check. In fact, the key USD index has now trimmed a portion of its strong intraday gains to the 91.00 zone, helping the EUR / USD pair attract some buying on dips near the 1.2130 region.

However, it remains to be seen if the bulls can capitalize on the move or if the EUR / USD pair encounters some new bids at higher levels amid the absence of relevant US economic releases. That said, the Short-term bias remains in favor of bullish traders and supports the prospects for additional earnings.

Technical levels

.

You may also like

How Michael Sailor can harm bitcoin
Top News
David

How Michael Sailor can harm bitcoin

While Michael Sailor reports on the purchase of another bitcoin batch for Strategy Balance (Microstrategy), claims to the businessman and