• Recovers further from Friday’s 3-month lows and remained sell bid for the second straight day.
• The USD held on the defensive amid growing US-China trade optimism and remained supportive. The EUR/USD pair quickly reversed an early European session dip to sub-1.1300 level and spiked to fresh multi-day tops, around the 1.1330 region in the last hour. The pair caught some aggressive bids at the start of a new trading week and built on Friday’s goodish bounce from three-month lows amid the prevalent selling bias surrounding the US Dollar. Growing optimism over further progress in the US-China trade talks kept the USD bulls on the defensive and was seen as one of the key factors driving the pair higher through the mid-European session on Monday. Meanwhile, market participants now seemed to have fully digested Friday’s downbeat comments by ECB board member Benoit Coeure, saying that the region’s slowdown had been deeper and broader than anticipated. Coeure’s comments further dampened hopes for a first ECB interest rate hike this year but failed to hinder the ongoing momentum, albeit it remains to be seen if the pair is able to sustain the strength or quickly run out of steam at higher levels. In absence of any major market moving economic releases on the back of the President’s Day holiday in the US, the USD price dynamics might continue to act as an exclusive driver of the pair’s momentum on Monday. Technical outlook Yohay Elam, FXStreet’s own Analyst writes: “Above 1.1325, resistance awaits at last week’s high of 1.1345. It is followed closely by 1.1355 which was a swing high beforehand, and the next line to watch is only 1.1390 recorded in January. “ “Support below 1.1290 awaits at 1.1270 which was a temporary low on the way down. The same applies to 1.1250 and the most significant level to watch is 1.1235 which is the fresh 2019 trough,” he added further.
Original from: www.fxstreet.com