- The recovery of the US dollar lost momentum after the beginning of the US session.
- EUR/USD consolidates gains and above 1.1500, up for the fourth consecutive day.
The EUR/USD managed to rise back above 1.1500 but it failed to reach fresh daily highs. After falling to 1.1490, rebounded and rose to 1.1530. As of writing it was hovering around 1.1510/20, consolidating modest daily gains.
Day’s gains came on Asian hours following Trump’s comments about monetary policy. US President spoke against higher rates and triggered a slide of the US dollar across the board sending EUR/USD to 1.1541, the strongest level since August 9. The euro is on its way to the fourth daily gain in a row as it continues to recovery from 1.1299.
Technical levels
The short-term trend continues to point to the upside, but on a wider perspective, is still bearish. A consolidation well above 1.1500 would add more support to the euro. A key dynamic resistance is the downtrend line from June highs that stands at 1.1670: a break higher could negate the negative tone.
In the short-term, to the downside, support levels might be located at 1.1490 (US session low), 1.1445 and 1.1415. On the flip side, the immediate resistance is 1.1540 (Aug 21 high) followed by 1.1570 and 1.1600.
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