- EUR / USD extends retracement after rejection over 1.1900 days ago.
- Lagarde: The exchange rate can have a negative impact on the path of inflation.
The EUR / USD broke below 1.1790 and fell to 1.1752, reaching the lowest level since last Thursday. In this way, the euro extends the retracement after having been trading above 1.1900 on Monday.
The positive tone in the bags remains, but this time the dollar is not weakening because of that. The dollar index (DXY) has just risen above 93.00, also hitting six-day highs.
Attention is now focused on the speech of Christine Lagarde, President of the European Central Bank (ECB). She signed that the exchange rate can have an impact on the trajectory of inflation, among other statements. His words so far have not had an impact on the euro. The common currency is also losing ground Wednesday against the pound and the Swiss franc.
The volume of operations in the financial markets could be reduced in the next few hours, since it is a holiday in the US for Veteran’s Day.
Technical overview
The EUR / USD maintains a very short-term downward bias, after rejection about 1.1900. The price is back below the 20-day moving average (1.1770). The next strong support is seen at 1.1695 and then the bottom of the current range appears on the scene and appears to be in effect again at the 1.1600 area. To the upside, the firm break at 1.1910 / 20 would encourage the euro to climb to 1.2000. But now, before that level it has resistances at 1.1825 and 1.1875.
Credits: Forex Street
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