- EUR / USD rebounds although still under downward pressure.
- Eurozone data: retail sales in Germany fall 4.5% in January, inflation in Eurozone rises 0.9% (year-on-year).
A slight rebound in the stock markets and a downward correction of the dollar, favored the recovery of the EUR / USD above 1.2000. The price had fallen to a three-week lows at 1.1990, and recently jumped to 1.2023.
Caution in the markets, the USD favored
The dollar lost strength in recent hours, making room for a rebound in metals and stock indices. Treasury yields are rising modestly on Tuesday.
The Monday’s strong rise on Wall Street is being followed by a Monday low. A warning from the regulator of the Chinese financial system about the bubbles that are forming in foreign markets put downward pressure on stocks.
Traders will closely monitor what happens to stocks and the bond market. In terms of data, figures for retail sales in Germany were released, showing a 4.5% drop in January. Inflation in the Eurozone, according to preliminary figures, rose 0.9% in February (annual), below the 1% expected. The figures had no impact on the market. In the US there will be no economic impact data. Brainard and Daly, Fed officials, will speak.
From a technical point of view, EUR / USD has eased very short-term pressures with the return above 1.2000, but the bias still points in that direction. At 1.1990 is the first support, followed by 1.1970, which protects the February floor of 1.1950. In the opposite direction, resistances are seen at 1.2030, followed by 1.2055 / 60.
Technical levels
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