- EUR / USD retreats after rejection above 1.1900, and marks daily lows near 1.1850.
- Mixed dollar: rises strongly against franc and yen, but falls against emerging markets and currencies linked to commodities.
EUR / USD rose to 1.1919, driven by a weak dollar, but then reversed the trend after the start of Wall Street. It just fell to 1.1851, marking a new low for the day.
The The rise of the EUR / USD had occurred in a context of strong advance of the stock markets in the world. The news from Pfizer, about a 90% effectiveness in its vaccine, activated the appetite for risk and sent equity markets soaring, weakening bonds. The dollar fell, although the most affected currencies were the Swiss franc and the yen.
In the last few minutes, stocks fell slightly from the highs and the dollar got some respite at certain crosses, enough to drive the EUR / USD down to 1.1850.
For now, the bullish bias of the EUR / USD remains intact and the rejection above 1.1900 can be seen as a pullback from the strong resistance at 1.1920. If it extends below 1.1850, there could be a deterioration of the bullish outlook, and already below 1.1760 (20-day moving average), the dollar would be strengthened.
A confirmation of the EUR / USD above 1.1920, would leave the euro ready to extend the bullish run. A close above 1.1950 would point to a test at 1.2000.
Credits: Forex Street
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