EUR/USD rejected above 1.1920, drops back below 1.1900

EUR/USD failed to hold above 1.1900 and erased all gains. The pair is trading at 1.1890/95, at the same level, it closed yesterday. The euro is among the worst performers. 

After the beginning of the American session, the pair spiked to 1.1940 and then pulled back, trimming gains. The euro is looking weak ahead of Thursday's European Central Bank meeting. It is falling even against the pound on a risk-off day in markets that usually favors the upside in EUR/GBP. The Dow Jones is down 1.0% at the lowest in a week. 

EUR/USD consolidation continues

The pair continues to consolidate around 1.1880. Since last Thursday all bullish attempts have been rejected above 1.1920. A consolidation on top could offer support to the euro for a more sustainable run higher. Resistance levels are seen at 1.1940 and 1.1980 (Sep 1 high). 

On the downside, the pair has been finding support around 1.1870. If it drops significantly below that level, it could drop further to test 1.1850; a break lower would expose last week lows at 1.1820.