EUR/USD off daily lows, back above 1.1200

EUR/USD gained momentum during the last hours as stocks in the US extended gains. The pair rose back above 1.1200, trimming losses while the Dow Jones index rose to 18,228 (+0.75%).

Again rejected from below 1.1200

After the beginning of the American session, EUR/USD dropped below 1.1200 and bottomed at 1.1190, the lowest since Thursday and quickly rose back above. Once again, like last Friday, the pair was rejected from below 1.1200.

Despite the recovery, the short-term bias still favors the US dollar as price holds below the 20-hour moving average that stands at 1.1230. A consolidation below 1.1190 could open the doors to and extension of the decline.

It was trading at 1.1220 down 0.30% for the day; it marks the first decline after rising during the previous four trading days.

Data ahead

Regarding economic data, on Tuesday, in the US the Consumer Confidence index (by Conference Board) rose to 104.1 versus 99.8 expected, hitting a 9-year high. Meanwhile, the  services Markit PMI came in at 51.9 versus 51 expected in September, while the Richmond Fed Manufacturing index rose from -11 to -8 in September.

On Wednesday, in the Eurozone, consumer confidence numbers will be released while in the US the August Durable Goods Order report is due. The leaders the European Central bank and the Federal Reserve will speak.

Janet Yellen will present testimony before the Committee on Financial Services, of the US House of Representatives on Supervision and Regulation. While in Germany, Mario Draghi, European Central Bank President, will address a parliamentary Committee to discuss monetary policy.