EUR/USD corrects from 11-month lows

EUR/USD has managed to recover ground on Monday, following ten consecutive days of losses, in what seems to be a merely corrective movement.

EUR/USD  lost more than seven big figures since peaking at the 1.1300 area as the knee-jerk reaction to US elections. However, the USD turned higher as investors begun to believe Trump’s administration will provide fiscal stimulus which would boost US economy and accelerate the pace of monetary tightening.

EUR/USD bottomed out at 1.0568 last Friday, but managed to take back some of its recent losses, with a daily high set at 1.0648. The pair has spent the last hours in a range near highs and it was last trading at 1.0625, up 0.29% on the day.

Later on the day, European Central Bank President Mario Draghi will speak before the European Parliament. Focus has been on the QE program lately, as investors question whether the central bank could keep the pace of purchases after March.

EUR/USD levels to watch

As for technical levels, short-term resistances could be found at 1.0648 (Nov 21 high), 1.0745 (Nov 17 high) and 1.0767 (10-day SMA).  On the other hand, next supports are seen at 1.0568 (Nov 18 low), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level).

To learn more about this topic, check our video analysis:

eur usd from Tip TV Productions on Vimeo.