The EUR/USD pair continued with the recovery from the lowest level since July 2020, near 1.1260 and climbed to 1.1358, just a two-day high. The euro and the Swiss franc are up versus the dollar and among the top performers of the day.

The recovery in EUR/USD gained support above 1.1330 and it could gain more strength if it breaks and holds above 1.1400. Even in this scenario, it would still look like a correction from the bearish trend that could resume anytime.

A slide under 1.1330 would leave the euro vulnerable for the next hours, with the focus turning to 1.1300. A break lower would expose the next support at 1.1285 before the recent low. A slide under 1.1300 seems unlikely over the next hours considering the euro is showing positive signs, Wednesday Doji’s close and the extended slide without a significant correction that took place since November 10.

The move to the upside in EUR/USD is taking place at a slow pace. Some profit-taking and lower US yields are behind recent gains. Better-than-expected economic data from the US helped limit gains.

The Philly Fed jumped in November to the highest since April at 39 versus the 24 of market consensus. Jobless claims (initial and continuing) fell to fresh pandemic lows. Those numbers boosted the dollar but only momentarily. The DXY is down for the second day in a row, under 95.70, extending the decline after being rejected from above 96.00.

EURUSD

Nov 18 2021