EUR / USD gives up most of daily gains and falls below 1.2200

• EUR / USD took a sharp pullback after hitting 1.2250.
• Dollar strength was behind the pair’s fall.
• Low volume of operations at the start of the limited week.

He EUR / USD gave up almost all of the day’s gains and fell to 1.2192, reaching the lowest level since the Asian session. The pair had previously climbed to 1.2250, the highest level since December 22.

The recent fall in the pair was tied to a general recovery of the dollar. The dollar index (DXY) went from trading below 90.00 to rising to 90.30, the highest since last Wednesday. The advance may be associated with a technical rebound, accompanying a rise in Treasury yields.

The main stock markets have not set new highs in recent hours and are consolidating gains. The Brexit deal together with the signing of the fiscal stimulus package by US President Donald Trump contributed to the good mood of investors. Initially this weakened the dollar, but in the run-up to the American session, it recovered.

He euro Despite falling against the dollar, it rises against the pound, and also against the Swiss franc. EUR / CHF peaked since June at 1.0891, worse then retreated without being able to clearly assert itself on previous peaks.

Levels to consider

From a technical point of view, EUR / USD’s advance slowed at 1.2250, which is a major resistance in the near term. Prior to this level, the euro should exceed 1.2225, while above 1.2270 / 75, the December peak.

The pair is trading around 1.2200. The next support is located at 1.2175, whose break will leave the euro weaker. Then the 20-day moving average appears at 1.2145, and the next support at 1.2115 / 20.