- EUR/USD is on the defensive as the DXY holds ground amid risk-aversion.
- Macro-economic divergence continues to weigh on the common currency.
- The spot to remain at the mercy of the USD dynamics amid a quiet start.
The recovery attempts in EUR/USD remain capped below 1.1800, as the traders remain on the defensive starting out a holiday-shortened US payrolls week.
The US dollar dynamics remain in play, weighing negatively on the major, in response to the prospects of a quicker economic recovery and higher vaccination rates in the US. In contrast, delays in vaccine rollouts and surging coronavirus cases in the Old Continent continue to cast a dark cloud on the region’s economic outlook.
developing story …
EUR/USD: Technical levels
“The pair is consolidating losses, with an immediate resistance near the 1.1850 level. There is also a major bearish trend line forming with resistance near 1.1850 on the same chart. The trend line is close to the 50% Fib retracement level of the recent decline from the 1.1946 high to 1.1761 low. On the downside, the pair might find bids near 1.1760 and 1.1750. Any more losses could lead EUR/USD towards the 1.1680 support zone,” Aayush Jindal at TitanFX explains.