- Euro consolidates rebound from weekly lows but remains unable to recover 1.1800.
- US dollar posts mixed results, DXY down for the day but far from recent lows.
The EUR/USD pair rose further after the beginning of the American session and printed a fresh daily high at 1.1817, the strongest since Friday. However, the euro failed to hold above 1.1800 and pulled back to 1.1790. For the second day in a row, the pair is having difficulties around 1.1800.
The greenback is posting mixed results on Wednesday despite higher US yields. The 10-year yield climbed to 0.688%, the highest since July. The move in the bond market might have limited the decline in the DXY. The Index peaked earlier slightly below 94.00 and dropped to 93.29. As of writing, it is moving back toward 93.50.
The euro is holding firm to gains versus the pound but is lower against the Swiss franc. European markets finished with gains while in Wall Street, the Dow Jones is up 093% and the Nasdaq gains 2.20%, recovering from Tuesday’s slide.
Fed’s Kaplan mentioned that the resurgence of the coronavirus has muted the US economic recovery. While Rosengren, another FOMC member, said the Fed has been clear that negative rates are unlikely.
Short-term technical levels
If the EUR/USD rises and remains above 1.1800, the euro should extend gains to the next resistance seen at 1.1840, followed by 1.1860. On the flip side, at 1.1775 is the immediate support followed by the 20-hour moving average at 1.1755 and then attention would turn to 1.1720.
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