EUR/USD: Rebound remains capped below 1.1800 amid downbeat mood

The recovery attempts in EUR/USD remain capped below 1.1800, as the traders remain on the defensive starting out a holiday-shortened US payrolls week.

The US dollar dynamics remain in play, weighing negatively on the major, in response to the prospects of a quicker economic recovery and higher vaccination rates in the US. In contrast, delays in vaccine rollouts and surging coronavirus cases in the Old Continent continue to cast a dark cloud on the region’s economic outlook.

Meanwhile, expectations of additional US infrastructure spending lend support to the greenback while the renewed American-Sino jitters also back the dollar’s safe-haven appeal.

Amid a relatively quiet start to the week, the traders will continue to watch out the US dollar trades for any meaningful impetus. The US Nonfarm Payrolls data is likely to emerge as the key event risk this Holy Friday-shortened week.

In the meantime, the US stimulus updates, Eurozone and German CPI reports will keep the markets entertained.

EUR/USD: Technical levels

“The pair is consolidating losses, with an immediate resistance near the 1.1850 level. There is also a major bearish trend line forming with resistance near 1.1850 on the same chart. The trend line is close to the 50% Fib retracement level of the recent decline from the 1.1946 high to 1.1761 low. On the downside, the pair might find bids near 1.1760 and 1.1750. Any more losses could lead EUR/USD towards the 1.1680 support zone,” Aayush Jindal at TitanFX explains.

EUR/USD: Additional levels