- The US dollar recovered modestly on Thursday, with the DXY index climbing towards the 93.00 level.
- EUR / USD consolidates around 1.1820, falls after a four-day move higher
The pair EUR/USD is consolidating its modest daily losses after posting the highest daily close in more than a month on Wednesday. A rally in the US dollar across the board has weakened the pair which is moving sideways around 1.1820 / 30.
The pair has bottomed out after the start of the American session at 1.1810, the lowest level in two days, but has quickly climbed back to the 1.1825 zone. During the last hours it has been consolidating, in the middle of a quiet session in the financial markets.
On Wall Street, the major stock indices are posting mixed results. Expectations of a new round of fiscal stimulus support risk appetite, but lack of agreement and definitions clouds the outlook. The DXY US Dollar Index rises 0.3%, recovering from monthly lows supported by higher returns in the US.
US economic data beat expectations, with a larger-than-expected decline in jobless claims to the lowest level since April and a sharp increase in existing home sales in September. In the euro zone, the consumer confidence index in October (preliminary) fell from -13.9 to -15.5.
EUR / USD still above the key trend line
From a technical perspective, the key resistance for the next few hours could be seen at 1.1840, a horizontal level and also where the 20 hour moving average is located. A break to the upside could lead to a test of the daily highs at 1.1865. On the other hand, a consolidation below 1.1820 would expose the round level of 1.1800.
In a broader perspective, the EUR / USD still has a bullish bias that will likely remain as long as it moves above the uptrend line, today at 1.1735.
Credits: Forex Street
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