The EUR/USD began the day on Monday receiving the result of the German elections with a rebound to 1.1726, the daily maximum. Subsequently, the pair has been losing ground, losing more than 40 pips until falling to Two-day lows at 1.1684.
The decline in the euro is mainly due to the strength of the dollar in much of the forex board. The DXY index that measures the greenback has jumped 30 pips higher in recent hours, reaching new highs since Thursday at 93.48.
The single currency does not seem confident enough to beat its pulse against the dollar, even after the SPD’s victory in the German elections held yesterday was well received by the markets.
Market operators will be very vigilant today for statements from central bank officials. The president of the ECB, Christine Lagarde, will speak first, followed by John C. Williams and Lael Brainard, members of the United States Federal Reserve.
Another focus of interest will be in the data for durable goods requests in the US for the month of August, which is expected to rise 0.7% after having fallen 0.1% in July.
EUR / USD Levels
With the pair trading at the time of writing above 1.1691, falling 0.25% daily, the first support is at 1.1683, the bottom of December 23, followed by 1.1664, minimum of August 20 and all of 2021. A break of this level can lead to 1.1602, minimum of November 4, 2020.
On the upside, the euro needs to regain the 1.1750 zone, the September 23 high, to regain momentum towards the psychological level of 1.1800. Above, the barrier to overcome is 1.1845, September 14 high.
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