The EUR/USD has started the week with a drop of more than 40 pips from the daily high of the Asian open at 1.1317 to the new intraday low at the beginning of the European session at 1.1274.
The reason for the decline is in the strengthening of the dollar in much of the forex board. The DXY index that measures the greenback has rebounded to 96.37, standing very close to Friday’s highs of 96.44. The recovery of the USD is linked to the reboot of 10-year Treasury yields, which have risen to 1.39% today after falling to 1.34% on Friday.
The single currency has also not been favored by the weak data of Germany factory orders published today. The indicator fell 6.9% in October, worsening expectations of a 0.5% decline after rising 1.3% in September.
The pair’s traders are now awaiting the Eurozone December Sentix investor confidence data. Without relevant data in the United States, the focus will be on market sentiment and news about the Omicron variant of covid.
EUR / USD Levels
With the pair trading at the time of writing above 1.1276, shedding 0.29% on the day, the first support to consider awaits at 1.1266, minimum of December 3. Further down wait 1.1235, soil of November 30, and whose break may lead to 1.1186, the minimum of the year reached on November 24.
To the upside, the euro should hold solidly above 1.1300 to attempt a rally towards 1.1333, roof on Friday. Above, the most relevant resistance is around 1.1360, maximum of December 1, and previous stop to try to assault 1.1382, the highest level of the last three weeks marked on November 30.
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