EUR/USD flirts with 1.1800 as US dollar rebounds amid risk-aversion
- EUR/USD stalls the corrective upside, as bears attack 1.1800 once again.
- DXY rebounds as market mood worsens, with US futures back in the red.
- EUR/USD to remain at the mercy of USD dynamics, Eurozone Sentix eyed.
EUR/USD is off the weekly highs, looking to test the 1.1800 mark, as the US dollar bulls return amid a return of risk-off mood ahead of the Eurozone data.
The main currency pair retreats, as investors scout for safety in the US dollar amid souring risk sentiment. The futures tied to the US indices flipped to losses, suggesting risk-aversion. Investors rethink the prospects of the post-pandemic economic recovery and odds of US President Joe Biden’s $2.25 trillion infrastructure plan.
Across the Atlantic, surging covid cases across Europe and strict restrictions in France, Germany and Italy continue to fuel the economic growth concerns for the euro traders. Therefore, the corrective upside in the major remains limited due to the macroeconomic divergence between the US and European Union (EU).
The US reported stronger jobs and services sector activity for March, boosting the Wall Street indices to record highs while downing the US dollar. The slump in the greenback helped EUR/USD to extend the rebound from four-month lows of 1.1703 reached on March 31.
Attention now turns towards the Eurozone Sentix Investor Confidence Index and Unemployment Rate for fresh trading impetus. In the meantime, the US dollar price action and risk trends will continue to remain the main drivers.
EUR/USD: Technical levels to consider