EUR/USD steady above 1.2150, looking at monthly highs
|- US dollar remains under pressure as US yields decline and equity prices rise.
- EUR/USD back above 1.2150 holds onto recent gains.
The EUR/USD reached at 1.2178, a fresh two-month high, and then pulled back finding support above 1.2150. It is hovering around 1.2160, holding onto the recent important gains.
A weaker US dollar continues to be the key support of the EUR/USD. The DXY is down 0.16%, trading slightly above 90.00. The 10-year yield is around 1.57% after hitting earlier on Monday levels above 1.60% momentarily. Stocks in Wall Street are mixed. The Dow Jones gains 0.78% while the Nasdaq drops 1.20%.
The mixed tone around risk sentiment contributed to limit the rally of the EUR/USD. A break above 1.2170 would target the 1.2190 area that protects 1.2200. On the downside, immediate support stands at 1.2150 followed by 1.2135 (daily low).
The euro is modestly higher on Monday versus the US dollar, up 150 pips from the level it had a week ago. The short-term trend points to the upside. “Now that EURUSD has “caught up” we, think it may struggle to break higher to a new trading range without fresh catalysts. We also note that spot has realigned with real rate differentials since late last year as FX markets focus more on expected differentials in growth potential”, explained TD Securities analysis in their monthly report.
Technical levels
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