Dollar demand resurged as traders returned to their desks after Monday holidays, with the greenback trading at fresh monthly highs against most of its rivals. There were no macroeconomic releases in Europe, but concerns over a Greek default arose after Finance Minister Yanis Varoufakis said the country is committed to reforms, but it cannot adopt further austerity measures. Later on in the day, the US will release several key fundamental readings, including Durable Goods Orders, Markit PMIs, New Home Sales and Consumer Confidence, all market movers, which means the market may show limited reactions to the first releases ahead of the rest.
Generally positive and up beating readings will likely boost the ongoing bullish rally in the USD, whilst it will be important to analyze if negative readings trigger some dollar declines, and whether or not renewed buying interest will surge at lower levels.
Technically, the EUR/USD 4 hours chart shows that the price has extended its decline a few pips below the 1.0900 level, and hovers around it, unable to recover ground. In the same chart, the technical indicators have lost their downward strength near oversold readings, but are far from suggesting a recovery, whilst the 20 SMA has extended its decline above the current price and offers a dynamic resistance in the 1.1030 region.
The immediate support stands at 1.0870, which means a break below it should lead to additional declines down to 1.0830, first, and towards the 1.0800 price zone should the dollar momentum extend. To the upside, the price can recover up to 1.0950/60, where the first round of sellers is expected to surge ahead of the 1.1000 region.
View live chart of the EUR/USD
Generally positive and up beating readings will likely boost the ongoing bullish rally in the USD, whilst it will be important to analyze if negative readings trigger some dollar declines, and whether or not renewed buying interest will surge at lower levels.
Technically, the EUR/USD 4 hours chart shows that the price has extended its decline a few pips below the 1.0900 level, and hovers around it, unable to recover ground. In the same chart, the technical indicators have lost their downward strength near oversold readings, but are far from suggesting a recovery, whilst the 20 SMA has extended its decline above the current price and offers a dynamic resistance in the 1.1030 region.
The immediate support stands at 1.0870, which means a break below it should lead to additional declines down to 1.0830, first, and towards the 1.0800 price zone should the dollar momentum extend. To the upside, the price can recover up to 1.0950/60, where the first round of sellers is expected to surge ahead of the 1.1000 region.
View live chart of the EUR/USD
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