The EUR/USD played in the Asian session on Tuesday a new low of 2021 and of the last 16 months at 1.1226. The pair regained momentum at the European open, rising to a daily high of 1.1264, but at time of writing it has moderated the move and is trading above 1.1245, gaining 0.08% on the day.
The pair remains at the mercy of the dollar, whose DXY index today has reached a new high from July 2020 at 96.60. The Jerome Powell reelection as chairman of the Fed, he gave force to the greenback. On the other hand, concerns about the increase in covid in the main European countries do not help the common currency, which now fears that the confinement decreed in Austria could extend to Germany and that other countries will again apply stricter restrictions.
Traders of the pair will be very attentive today to the release of preliminary November PMI data for Germany, the euro zone and the United States, as they could move the pair.
EUR / USD Levels
If the pair breaks today’s low at 1.1226, immediate support will be found at 1.1219, July 3, 2020 low. Further down the decline will target 1.1168, floor of June 19 and 22, 2020.
On the upside, the euro would need to recover above 1.1300 to attempt further gains, the main resistance being the zone 1.1370/75, where are the November 18 highs. Above 1.1400, the main barriers are at 1.1464, the November 15 high, and 1.1485 / 87, the November 11 high.