EUR/USD erases losses as Dollar’s momentum eases
- DXY back into negative territory for the day.
- EUR/USD rebounds from 6-day low, back above 1.1850.
The EUR/USD pair moved off daily lows during the American session after the USD rally lost momentum. US bonds yields failed to reach new highs while equity prices in Wall Street pulled back from record high levels.
Earlier today, the greenback spiked following Janet Yellen’s comments on the economic outlook and monetary policy and then after US Q3 GDP data that surpassed expectations.
The euro, also affected by EUR/GBP selling, dropped to 1.1815 against the US dollar, the lowest since last Thursday. From the lows rebounded modestly, until recently when it managed to break above 1.1850. It also rose on top of the 20-hour moving average.
As of writing, EUR/USD stands at 1.1867, the highest of the US session but is still not clear if the current move from 1.1815 is a bullish correction from the slide that started on Monday from above 1.1950 or a resumption of the uptrend.
EUR/USD levels to watch
To the upside, the next resistance could be seen at 1.1885 (daily high), followed by 1.1910 and 1.1945 (Nov 24 high). On the downside, the FXStreet's technical confluence indicator shows 1.1800, 1.1775 and 1.1730 as support areas.