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EUR / USD cuts losses after hitting one-week lows below 1.1600

  • The euro among the weakest on Monday, manages to cut losses after the start of the American session.
  • EUR / USD bounces but remains below the bottom of the recent range.

The EUR / USD is falling on Monday although it was able to cut losses in the last hour. The pair declined to 1.1589, before bouncing to 1.1610, where it is trading. The pullback accelerated after breaking 1.1615 / 20, the bottom of a multi-day range.

In the last hour the dollar lost strength throughout the market, favoring the rebound of the EUR / USD. The dollar index went from a one-week high just below 94.00 to 93.80. The move was due to a drop in Treasury bond yields. The 10-year rate went from 1.67% to 1.62% in a few minutes, pushing the dollar down.

The euro for his part, he continues to show some weakness. The economic data from Germany known hours ago did not help, being below expectations. This week’s key event for the euro will be Thursday’s meeting of the Governing Board of the European Central Bank (ECB). There may or may not be announcements regarding the shopping programs.

Breaking range

The EUR / USD it is breaking the multi-day range between 1.1670 and 1.1615. A return above 1.1620 would limit the negative tone of the pair, favoring some consolidation ahead. But if the euro cannot regain that area, then an extension of the downs would be expected. The next supports are at 1.1570, 1.1545 and 1.1523 (October 13 low).

Technical levels

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