EUR Struggles To Extend Recovery

Recovery off Thursday's low of $1.1738 touched a high of $1.1870 Friday. Trade in a Tokyo holiday thinned Asian session Monday found difficulty in extending this recovery much above Friday's high, the rate posting a high of $1.1872(off an early session low of $1.1840) despite the USD trading with a general soft tone, as well as US equities drifting lower. A light data calendar Monday with attention seen on ECB Lagarde, speaks at 1345BST in an online meeting of the Franco-German Parliamentary Assembly. More in focus this week will be Wednesday's release of flash PMI data from France, Germany and the EZ ahead of Germany Ifo Thursday. Covid second wave expected to prompt renewed lock down measures in Europe. Support remains around $1.1840 ahead of $1.1825/20 and $1.1800. Resistance $1.1772/82 ahead of $1.1900.
MNI Techs: EURUSD has defined a key S/t support at 1.1738, Sep 17 low. A number of bearish technical signals last week suggest the pair remains vulnerable. A break of trendline support drawn off the May 14 low and what appears to be a head and shoulders reversal on the daily chart highlight downside risk. However, weakness below 1.1738 is required to reinforce this set-up. A break of resistance at 1.1917 would instead reinstate a bullish focus.