EUR / USD retreats from highs in almost four weeks to 1.1950 zone

• The dollar recovers strength against European currencies, continues to weaken on other fronts.
• EUR / USD near strong resistance located at the 1.1990 zone.

EUR / USD rose to 1.1973 on Wednesday, reaching the highest level since March 18. It then took a pullback, finding support at the 1.1950 area. It is trading at 1.1960, rising for the third consecutive day and for the eighth time in the last ten trading days.

Ups continue to be supported behind dollar weakness, although the greenback in the last hours managed to cut losses against the main European currencies. However, against the AUD and NZD it is still in the lows.

The slight rebound in Treasury yields appears to be helping the greenback, which was affected by inflation data on Tuesday. The relevant report on Wednesday will be the Beige Book of the Federal Reserve. In addition, several Fed officials will speak, including President Powell, who will speak at the Economic Club of Washington.

In the Eurozone there was a 1% drop in industrial production in February (consensus: -1.1%). According to analysts at Capital Economics, the data reinforces the perspective that the Eurozone started the year weak, although they clarify that business surveys suggest that the outlook is improving.

Near and far from 1.20

The EUR / USD technically remains bullish in the very short term. In front it has an important resistance in the zone of 1.1990 and 1.2000. A firm break from that level would enable a bullish extension. Before this level, at Wednesday’s highs is the 55-day average, another resistance to watch out for.

If there is a pullback, the first support appears at 1.1940 and then the strongest barrier at 1.1920.

Technical levels