- EUR/USD has been operating in the low zone since March 2020.
- Outlook remains negative for the euro, closer to touching since 2017.
- The dollar with mixed results, bags experience recovery.
EUR/USD is falling for the fourth day in a row and reached 1.0671, the lowest level since March 2020. It then had a limited bounce, failing to rise above 1.0700. The outlook remains negative for the pair, even as the dollar is losing strength.
EUR/USD continues downhill
The Stocks in Europe are rising following the rebound in the American Monday afternoon, also supported by announcements from the central bank of China to provide monetary support to the economy. This may have helped limit EUR/USD’s declines.
The expectations of monetary adjustment by the European Central Bank (ECB) have softened slightly after last week’s jump. More ECB officials (De Cos and Villeroy) will speak on Tuesday.
The dollar has mixed results on Tuesday. DXY rises again after reaching new highs in years just below 102.00. The greenback fell modestly against commodity-linked currencies, due to a rebound in their prices and some improvement in equity markets.
The economic calendar shows several US economic reports ahead, although without great capacity to affect the market. Other traders will be watching corporate results.
Looking at the floor of 2020 and 2017
EUR/USD negative bias remains firm, and if it breaks 1.0670, a test of the March 2020 low at 1.0635 could be expected. There are no major supports below until the 1.0500 area, near the 2017 low.
If ground is regained, resistance is seen at 1.0705, followed by the important area of ​​1.0760. A return above would relieve downward pressures. Then follows 1.0810.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
