EUR/USD consolidates losses in a range below 1.1800

EUR/USD continues to move in a small range between 1.1775 and 1.1750, consolidating daily losses. Price is back at the same level it closed on Friday. The pair erased Monday’s gains amid a stronger US dollar. 

The greenback rose during the European session across the board and stabilized. Volatility is falling in financial markets while equity prices are rising in Wall Street. The Dow Jones is up 0.60% and the Nasdaq gains 1.00%. 

Wall Street starts day higher on robust data and bargain-shopping

No relevant economic data was released today in the US while in Europe, the German ZEW economic sentiment showed a significant slide in August and affected the euro marginally. 

German ZEW economic sentiment deteriorates sharply in August

Levels to watch 

Yesterday the euro peaked at 1.1827, the highest in a week but lost momentum. Price was unable to break the 1.1830 area that has become a key short-term resistance. A consolidation on top could add momentum to the euro. 

At the moment the pair is trading at 1.1765, slightly below the 20-day moving average that stands at 1.1780. To the downside, support levels might be located at 1.1740/45 (Aug 22 low), 1.1730 (Aug 21 low) and 1.1685 (Aug 9 & 15 low).