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Risk aversion continues to support the euro. EUR/USD rose again to test daily highs but after reaching 1.0982 pulled back again toward the 1.0950. Stocks in Wall Street extended losses. The Dow Jones is falling 3% and the Nasdaq 3.55%.
During the last hours the pair has been hovering between daily highs at 1.0935; modestly above the level it had seven days ago, but with a daily gain of 90 pips, the best performance in a week.
EUR/USD capped by 1.10
For the sixth week in a row EUR/USD traded near or even momentarily above the 1.1000 area. The mentioned level has become a key resistance zone; is not only a psychological level but also where the 20-week moving average stands.
A consolation on top of 1.10 could open the doors for more gains and probably of a rally toward 1.15, in the medium term. But as long as it remains below, the upside would be limited. To the downside, the level to watch continues to be 1.0800; under that level, 1.0500 would be exposed.
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