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For the US data, the only release will be the consumer credit data for the month of October.

  • EUR / USD falls to 3-day lows near 1.2080 on Monday.
  • Risk-off sentiment supports dollar demand.
  • German industrial production expanded 3.2% month-on-month in October.

The common currency extends Friday’s corrective decline and dragging EUR / USD to new lows below 1.2100 Monday.

EUR / USD in 3-day lows

EUR / USD falls for the second day in a row at the beginning of the week and falls below key support at the 1.21 level amid resumption of risk-off sentiment among market participants.

In addition, the pair is also watching some profit taking, as investors continue to cash in on some of the pair’s strong recent gains. It is worth remembering that the pair has gained more than 500 pips since the beginning of November until last friday.

Regarding euro data, German industrial production surprised to the upside and expanded by 3.2% compared to the previous month in October. In addition to the optimistic results in the region, the Sentix index, which measures investor confidence, stood at -2.7 for the current month.

For the US data, the only release will be the consumer credit data for the month of October.

What can we expect around the EUR?

EUR / USD bullish momentum has wavered near the 1.22 barrier in the past days, always in the favorable context in the risk complex. In the very short term, EUR / USD appears supported by the prospects for a strong recovery in the region coupled with the increasing likelihood of additional stimulus in the US The risks to this positive sentiment stem from potential political turmoil around the US. EU Recovery Fund and the growing chances of further easing measures from the ECB being announced as early as the December meeting.

EUR / USD levels

At the time of writing, the EUR / USD pair is shedding 0.26% on the day, trading at 1.2089. Next support is at 1.1920 (November 9 high), followed by 1.1800 (November 23 low) and 1.1745 (November 11 low). On the other hand, a breakout of 1.2177 (December 4 high) would point to 1.2413 (April 17, 2018 high) on the way to 1.2476 (March 27, 2018 high).

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