EUR / USD extends retracement and makes towards 1.2050

• EUR / USD fails to stay above 1.2100, triggering a correction.
• The dollar with mixed results throughout the market.

The EUR / USD extended the pullback below 1.2100 and fell to 1.2058, setting a new low for the day. After the start of the American session, the intraday tone continued to be bearish with the euro losing ground from highs in months.

The dollar presents mixed results throughout the market, in a day of lateral movements in several of the main financial assets. Stock markets are rising modestly. Treasury yields are blotting out the hikes. The 10-year rate had climbed to 1.59%, and now stands at 1.56%, unchanged from Friday’s close.

The change of direction in bond yields detracted from the dollar and possibly limited the EUR / USD declines. The euro also lost ground in recent hours against the pound and the Swiss franc.

With regard to data, the US saw a rise, but less than expected, in durable goods orders for March. In the Eurozone there was a rise below expectations in the IFO business survey in Germany. Among the key data ahead in the week will be the growth figures of the Eurozone and the US, in addition to the decision of the Federal Reserve on Wednesday.

From a technical point of view, EUR / USD maintains the dominant bullish bias, but in the very short term, it has lost steam. The failure to hold above 1.2100 triggered a pullback that has accelerated in the last hour. In case of continuing, the possible supports are seen 1.2045 and then 1.1990. The latter is key, since a drop below could suggest a temporary top.

Technical levels