EUR/USD struggles for direction near 1.1780 on Tuesday
EUR/USD regained upside traction after re-visiting the area of YTD lows in the 1.1700 neighborhood during last week and now flirts with the key 2020-2021 line near the 1.1800 zones. The monthly leg lower in the pair comes after another failed attempt to break above the tough resistance band at 1.1880/90 and follows the quite solid prospect for the dollar, always backed mainly on tapering speculation. On the euro side of the equation, the re-affirmed dovish stance from the ECB (as per its latest meeting) is expected to keep the upside limited in the spot despite auspicious results from key fundamentals and the persistent high morale in the region.
So far, spot is gaining 0.03% at 1.1779 and faces the next hurdle at 1.1866 (50-day SMA) seconded by 1.1908 (monthly high Jul.30) and finally 1.1975 (weekly high Jun.25). On the other hand, a breakdown of 1.1705 (monthly low Aug.11) would target 1.1704 (2021 low Mar.31) en route to 1.1602 (November 2020 low).