- The euro trimmed a small part of Friday’s losses against the dollar.
- Start of the week with some calm, with the focus on the Fed.
- Data ahead: Important figures from the US manufacturing sector will be released on Monday.
The EUR / USD is rising on Monday after having had a sharp drop on Friday and the lowest weekly close since July 2020. The pair traded at the start of the European session below 1.1550 and then bounced up to 1.1574, the high of the day. It remains close to the maximums, in a day of limited routes.
The EUR / USD bounce is led by a mixed dollar behind, and the EUR / GBP advance, at the start of a busy week that includes the Federal Reserve meeting (decision on Wednesday). The report will be published on Monday IHS Markit USA October on el manufacturing sector and also ISM and construction spending. The data could challenge the moderate runs that are being seen.
Weakness persists despite rebound
Monday’s rally in EUR / USD is still not strong enough to outpace current weakness. If the advance is extended, the next resistance is at 1.1580 / 85 and then at 1.1625 and 1.1665.
To the south, the October lows appear at 1.1520 / 25, which is the key resistance level. The break in that zone will expose the 1.1500 area; below the next target is 1.1480.
Technical levels
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