EUR / USD marks daily lows near 1.1810

  • Euro loses moment against the dollar, while stocks rise.
  • EUR / USD retreats from one-week highs.

The EUR / USD had reached 1.1869 at the start of the European session, reaching the highest level in a week but failed to sustain itself, moving to negative territory. It recently fell to 1.1813, marking a new low for the day and is trading around 1.1830, slightly negative for the day.

The EUR / USD bearish trend accelerated in the last hours and after the Moderna company announced that its vaccine is 94.5% effective. This triggered a strong rally in stocks and pushed safe haven currencies like the Swiss franc and the yen down.

The euro was not helped by the novelty and optimism, except for the advance of the EUR / CHF. In Europe, the market climate varies between new restrictions on driving due to the increase in coronavirus cases and optimism about the vaccine.

The US saw an unexpected drop in the Empire manufacturing index for November, but without affecting market sentiment. Attention is still focused on what happens on Wall Street and the words of Christine Lagarde, president of the European Central Bank, are awaited.

Technical overview

EUR / USD is breaking on a two-day rally streak, below a very short-term trend line. This indicates a negative bias in the short term, albeit with support at 1.1800 / 10. A dip below would expose the 1.1780 zone, where the 20 and 55-day moving average are passing. A confirmation below would anticipate further weakness ahead.

On the upside, by 1.1840 is the 20-hour average, whose break would turn the intraday bias to bullish. The next resistances are seen at 1.1870 and 1.1900.

 

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