EUR/USD moves off 2016 lows, erases intraday losses

After hitting fresh 2016 lows on Friday, EUR/USD managed to recover its intraday losses and is trading back above the 1.0600 level.

EUR/USD extended losses into a tenth day and bottomed out at 1.0580, level last seen Dec 3 2015. The pair has managed to recover some ground and it was last trading art 1.0622, little changed on the day.

EUR/USD remains under pressure after ECB President Draghi pledged to maintain monetary stimulus while on the other hand, Fed’s Chair Yellen said the previous day that an increase in interest rates “could well become appropriate relatively soon.”

On Thursday,US initial jobless claims and inflation data fueled further expectations for a rate hike at the Fed’s December policy meeting.

EUR/USD levels to watch

As for technical levels, next supports are seen at 1.0580 (Nov 17 low), 1.0550 (Dec 2 2015 low) and 1.0500 (Dec 3 2015 low/psychological level). On the flip side, immediate resistances could be found at 1.0745 (Nov 17 high), 1.0812 (10-day SMA) and 1.0850 (Oct 25 low).

To learn more about this topic, check our video analysis:

EURUSD from Tip TV Productions on Vimeo.