EUR/USD on a steady rise towards 1.0780, USD resumes decline
|The EUR/USD pair regains poise and heads for a test of more-than five-week highs reached near 1.0780 region, as the US dollar resumes its downward spiral across the board, with the DXY breaching 100 mark once again to register fresh multi-week troughs in the Asian session.
The greenback remains broadly sold-off into last week’s less hawkish Fed’s outlook on the interest rates, which also continues to keep the treasury yields subdued across the horizon.
Moreover, the common currency also cheers Macron keeping the edge in the French election race ahead of the first debate, as reflected by the Odoxa Poll released over the weekend.
Additionally, latest comments from the ECB policymaker Visco, discussing on the QE exit and rat hike also collaborates to the upside in EUR/USD.
Later today, the major will get influenced by the USD dynamics ahead of the German Bundesbank (Buba) monthly report, which will highlight that the German inflation rose at the fastest rate in 4 years.
Besides, German Buba president Weidmann and FOMC member Evans will take will up on the rostrum later in the NA session.
EUR/USD Technical Levels
Jim Langlands at FX Charts explains, “The contradictory look of the indicators suggest that EurUsd will remain choppy and range bound on Monday and possibly Tuesday. If wrong, and the Euro can make further headway, then above Friday’s high would find sellers at the descending trend resistance, now at around 1.0790 and which should be strong at the first attempt.”
“Beyond there though, could then head towards 1.0830, a break of which we could then see a run towards 1.0873 (8 August high) and on to the 200 DMA (1.0900). On the downside, support will be seen at the minor Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0715 and then at 1.0670,” Jim added.
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