EUR / USD bounces off 1.1795 and approaches day highs

• EUR / USD is under pressure around the 1.18 zone.
• The dollar loses steam in the last hours and falls into negative territory for the day.

The EUR / USD came to trade during the European session below 1.1800 and is now in the 1.1820 zone, after bouncing from that level before a decline in the dollar in the market.

The price is moving without a clear direction on Tuesday, improving the outlook compared to hours ago. The momentum is given by a moderate fall in the dollar on all fronts. The dollar index (DXY) is losing 0.10% after being in positive territory.

The greenback looks weak on Tuesday, one week before the US elections. Stocks in Europe are showing mixed results, but on Wall Street, the futures of the main indices point to a positive open.

Regarding data, it was known that the money supply of the European Central Bank (ECB) expanded 10.4% compared to a year ago in September and loans to companies by 3.1%.

In The US will release today the report of durable goods orders and home price indices, in addition to the Richmond Fed activity indicator. The expectation is focusing on what will be Thursday’s meeting of the European Central Bank. While in the US the focus is still on negotiations for more fiscal stimulus. No big progress is expected one week before the elections.

From a technical point of view, EUR / USD is moving sideways on Tuesday. To the downside, a confirmation below 1.1795 would point to a steeper decline, with the next strong support at 1.1760. In the opposite direction, a reaffirmation over 1.1830 could strengthen the euro. The next significant resistance can be located around 1.1870.