- The dollar strengthens before the American session and erases losses.
- The euro is not affected by economic figures or statements.
- EUR/USD intraday outlook change to bearish.
EUR/USD pulled back from month-long highs in recent hours, erasing the day’s gains. The pair had reached as high as 1.0584, the highest since late June, and then began to pull back on a strengthening dollar, reaching as high as 1.0517.
Data and statements: no surprises
The remarks by a European Central Bank official on Monday did not come as a surprise. In general, the need to raise interest rates continues to be mentioned, since they are not in restrictive territory and it is not clear that inflation is under control.
Regarding data from the Eurozonethere was a greater than expected recovery in the Sentix Confidence index in December and a greater than expected drop in October retail sales in the Eurozone.
The data and statements did not have a major impact on the common currency. In USA. on Monday the final November PMI data, the factory orders report and the services sector ISM will be released.
Panorama
The underlying trend remains bullish for the EUR/USD. In the very short term, the pair fell below the 20-hour moving average, which is passing by 1.0550. A return above would expose the 1.0570 zone, and then the highs appear and 1.0600.
On the downside, at 1.0510/1.0500 there is relevant support that should contain the falls. A break of that level could favor an extension of the correction possibly towards the next support at 1.0445/1.0450.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
