The American dollar fell against most of its major rivals, main exception made by the euro, as investors struggled to stay positive following disappointing US data. However, weak Eurozone inflation readings kept the shared currency undermined throughout the day.
The common currency was on its back foot ever since the day started, advancing briefly towards 1.0960 at the London opening before falling to fresh lows at 1.0858. Despite broad dollar’s weakness, the pair consolidates near its daily low by the end of the day, maintaining a generally negative technical tone. At time of writing, EUR/USD is trading at 1.0886, down 0.45% on Monday.
EUR/USD technical perspective
“Short term, the 1 hour chart shows that the price remains below a bearish 20 SMA, while the indicators head south within bearish territory, indicating the risk remains towards the downside,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical picture also favors additional declines, although the technical indicators have lost bearish strength around oversold levels. Some consolidation could be expected, with strong buying interest aligned around 1.0810, and large stops below it that if triggered, could see the pair approaching 1.0700 next Tuesday.”
Support levels: 1.0850 1.0810 1.0770. Resistance levels: 1.0920 1.0960 1.1000.
(Market News Provided by FXstreet)