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EUR/USD consolidates recovery and holds above 1.1300

2018-11-16 10:44:32Market Analysis
EUR/USD consolidates recovery and holds above 1.1300

The EUR/USD pair is trading at the same level it closed yesterday as UK PM May delivers a press conference. The pair bottomed during the European session at 1.1269 but then bounced to the upside, and recently reached 1.1340 before pulling back to 1.1320. 

The euro traded sideways, unaffected by US data and influenced by Brexit developments. It received support from the rally of EUR/GBP while the US dollar had a mixed performance. The US Dollar Index is marginally higher at 97.05, moving around yesterday’s close. 

The recovery from multi-month lows lost strength today after being unable to break the 1.1350 area. A consolidation on top could signal more gains ahead. Despite not rising further, a positive development for the euro is that it held at all times today above Wednesday’s low. A firm slide below 1.1260 would signal the recovery is over, exposing the euro to further losses. 

EUR/USD Levels to watch 

To the upside, the immediate resistance is seen at 1.1345/50 (Nov 14, 15 high) followed by 1.1375 and 1.1395 (Nov 7 low). On the downside support could be located at 1.1295 (20-hour moving average), followed by 1.1260 (Nov 14 low) and 1.1235.