- EUR / USD falls back to the 1.1900 zone before dipping towards 1.1800.
- The euro sinks with the USD rebounding.
- EUR / USD faces stiff resistance at 1.1920.
The euro It has failed to stay above 1.1900 once again on Monday and fell sharply from the two-week highs at 1.1905. The strong recovery of the US dollar in the North American trading session has sent the pair almost 100 pips lower, to reach support at the 1.1800 area before bouncing to 1.1830 at time of writing.
Euro sinks with USD in recovery
EUR / USD opened the week on a solid tone, driven by positive market sentiment after pharmaceutical giant AstraZeneca reported that its COVID-19 vaccine is 90% effective. Beyond that, better-than-expected Eurozone flash PMIs contributed to increasing demand for the euro during the European trading session.
However, the positive trend of the euro was limited early in the US session, as the US dollar rallied strongly on the upbeat US PMI figures. The hitherto weak USD appreciated against its main rivals after Markit’s preliminary Purchasing Managers Index reported better-than-expected activity data in the services and manufacturing sectors, boosting confidence in the resilience of the US economy. .
EUR / USD faces stiff resistance at 1.1920
FXStreet Chief Analyst Valeria Bednarik points to 1.1920 as a key level for determining the near trend direction of the euro: “EUR / USD faces strong resistance at the 1.1910 / 20 price zone, where it established intraday highs between October and November. Further gains beyond the mentioned resistance area expose the yearly high at 1.2011 “.
Technical levels
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