- The euro loses momentum against the US dollar, recovers against the pound.
- EUR / USD pulls back after testing 2020 highs, remains sideways.
The pair EUR/USD It pulled back dramatically for the past few hours amid a US dollar reality across the board. It falls from 1.2176, the highest level in a week to 1.2126. The euro erased most of its daily gains and, at the time of writing, is trading at 1.2135, above Friday’s close but far from the highs.
The DXY cut losses and rose again above 90.70 after falling to the lowest level since 2018 near 90.30. The dollar’s recovery picked up speed amid a reversal on Wall Street. The Dow Jones is still up 0.48% but far from the highs, while the S&P 500 is up 0.55%. US yields continued to climb throughout the day.
The first person in the US received the COVID-19 vaccine. Optimism around the outlook for the pandemic waned with news of the closures in London and New York.
EUR / USD fails at 1.2170
The euro rose earlier to test the 2020 highs, but after matching the December high in the 1.2175 zone it fell back. The EUR / USD pair continues to consolidate at the top, unable to clearly break above 1.2170 or below 1.2070.
The main trend points to the upside. The euro needs to clearly break 1.2170 to open the doors to more gains.
Technical levels
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