EUR/USD stabilizing near 1.2420

FXStreet (Edinburgh) - The single currency is finishing the day in the red territory on Monday, with EUR/USD consolidating around 1.2430.

EUR/USD back from above 1.2500

Spot posted fresh session highs in the proximity of 1.2520 during the European morning, sparking a correction lower soon afterwards while market participants were digesting Friday’s Payrolls. In the only release of relevance in the euro area, the Sentix index, which tracks the Investor Confidence, improved to -11.9 for the month of November, surpassing both expectations and previous print. Camilla Sutton, Chief FX Strategist at Scotiabank, argued the technicals remain bearish, adding “most studies continue to hold on to their bearish outlooks, unfazed by the uptick in spot. Support lies at the recent low of 1.2358 with resistance at 1.2500”.

EUR/USD levels to watch

The pair is now up 0.14% at 1.2435 with the next resistance at 1.2509 (high Nov.10) followed by 1.2527 (10-d MA) and then 1.2533 (high Nov.6). On the flip side, a break below 1.2358 (low Nov.7) would expose 1.2342 (low Aug.21 2012) and then 1.2295 (low Aug.20 2012).