- The dollar fell in the market on Monday, paring a small part of the rise on Friday.
- No impact data ahead, holiday in the US.
- EUR/USD with a bullish intraday bias, but still with risks of further correction.
EUR/USD is rising modestly on Monday, against a backdrop of some calm in the markets, after Friday’s sharp drop. The pair held above 1.1400 in the Asian session and then rose to 1.1434, the high of the day. It is trading at the 1.1420 area, with a bullish bias, supported by a decline in the dollar in the market.
The economic calendar is light on Monday. In the US, the markets will be closed for the Martin Luther King Jr. holiday. Normal activity and data will only return on Tuesday with the Manufacturing Empire report. In Europe, in minutes the German central bank will publish the monthly report.
In the Asian session the notable data were those of China Most of which exceeded expectations. Growth was 4.9% in the fourth quarter, lower than the previous 5.2%, but higher than the 4.8% market expectations.
technical landscape
The very short-term bias is bullish although Friday’s pullback left signs that the downward correction could resume. Below 1.1400 the next support is at 1.1375/1.1380.
To the upside, EUR/USD is facing resistance at the 1.1435 area and then at 1.1450. The intraday bullish bias could be in trouble on a drop below 1.1415, where the 20-hour moving average is passing.
Technical levels
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