EUR / USD sets new lows for 2021 near 1.1810, limited recovery below 1.1850

• EUR / USD remains on the defensive near 1.1800.
• Quote falls below the 200-day moving average.
• Eurozone PMI data beats expectations.

The pBearish resistance on EUR / USD remains intact. The price hit four-month lows at 1.1811 before bouncing back to the 1.1850 area, unable to break above it. The key factor remains the strength of the dollar.

The pair is falling for the second day in a row and has fallen below the 200-day SMA. If confirmed below the latter, further declines would be expected, with the former target at 1.1800.

The new blocking measures, the stricter COVID-19 restrictions and the slow vaccination process in Europe, clouds the optimism of investors of a strong economic rebound, generate an impact on the euro and equity markets.

Eurozone PMI data for March (preliminary) was above expectations but did not help the euro. In the US Powell will testify again on Wednesday with Janet Yellen. In addition, the durable goods orders report and the PMI will be published.

Before US data, EUR / USD is trading at 1.1825, close to the lows. Traders will be attentive to what happens with the bond market and on Wall Street, in addition to the reports. From losing 1.1800, strong support looms at 1.1760 / 65. To the upside above 1.1850, the next resistance appears at 1.1880 / 85.

Technical levels