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EUR/USD remains pressured around 1.1800 as market sentiment remains tilted to the risk-off mood on Tuesday, FXStreet’s Pablo Piovano reports.

Key quotes

“Following recent 2-week highs in the 1.1830 region at the end of last week, EUR/USD has so far embarked on a corrective downside that met contention in the 1.1790 zone for the time being, where is located the 55-day SMA.”

“Activity around the single currency remains contained and within a broad-based cautious note ahead of the EU Summit on Thursday and Friday. In addition, market chatter on extra US fiscal stimulus appears to be dying off, while the unremitting advance of the coronavirus pandemic puts the economic recovery to the test, all weighing down on the euro.”

“The continuation of the corrective downside in EUR/USD carries the potential to extend further and re-visit the 1.1700 neighbourhood, where coincide the immediate support line (off 2020 high) and a Fibo level (of the 2017-2018 rally).”

“The surpass of recent tops in the 1.1830 zone should open the door to extra gains to, initially, the 1.1917 level (September 10) ahead of 1.1965 (August 18). A move to the 2020 high just beyond 1.2000 the figure is seen unlikely for the time being at least.”