- The euro remains bearish against the dollar, although it cuts losses.
- Consolidation above 1.1800, would give support for possible extra upward correction.
The EUR / USD fell to 1.1769, the lowest level in two weeks and then bounced back towards the 1.1805 area.. The advance of the last two hours has managed to ease the downward pressure. The bias continues to point south, but with less intensity.
The rises were driven by a decline in the dollar throughout the market after the beginning of the American session. The rise in equity markets coupled with a decline in Treasury bond yields weakened the greenback.
On Tuesday in the US the inflation data for August will be published, which may be the most important of the week, in the run-up to the Federal Reserve meeting. This week there will be no statements from officials.
On the technical side, EUR / USD maintains a bearish bias but with the moment now showing less dollar strength. The bounce from spreading could hit the next resistance at 1.1810 and then 1.1835 will follow. Just the break of 1.1850 would be a strong signal for the end of the correction. To the downside, a return below 1.1780 would suggest sustaining the negative tone. At 1.1750 there is a key support that if it were to give way would point to further weakness and further declines.
Technical levels
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