EUR/USD advances to 6-day highs above 1.1740

EUR/USD continues to push higher in the American session.
US Dollar Index falls sharply, tests 93.00 on Monday.
S&P 500 Index reaches new all-time high as risk flows dominate markets.

Eren Sengezer FXStreet

After posting its lowest weekly close of 2021 at 1.1696 on Friday, the EUR/USD pair reversed its direction on Monday and was last seen gaining 0.4% on the day at 1.1742.

The heavy selling pressure surrounding the greenback seems to be the primary driver behind EUR/USD's rebound at the start of the week. With risk flows starting to dominate the financial markets, the USD struggled to find demand and the US Dollar Index was last seen testing 93.00, losing 0.4% on a daily basis.

Reflecting the upbeat market mood, the S&P 500 Index, which lost 0.6% last week, is now trading at a new record-high of 4,486 with a daily gain of 1%.

Meanwhile, the data from the US revealed that Markit Manufacturing PMI and Markit Services PMI both came in lower than analysts' estimates in August's flash estimate. Nevertheless, these prints had little to no impact on risk perception.

On the other hand, the European Commission reported that the Consumer Confidence Indicator in the euro area declined to -5.3 from -4.4, compared to the market expectation of -5.

EUR/USD near-term outlook

Economists at Société Générale think that EUR/USD would need to break above 1.1810 in order to extend its rebound.

"EUR/USD has embarked on a rebound after hitting 1.1660 last week. The bounce could persist towards a multi-month descending trend line at 1.1810. This hurdle must be reclaimed for an extended up-move," economists said. "The ECB will publish the minutes of the July meeting on Thursday, but the bar is low to alter market perceptions. Villeroy may repeat that it is too soon to discuss reducing PEPP bond purchases, which could check the potential upside of a corrective bounce in EUR/USD.”

Technical levels to watch for

EUR/USD

Overview
Today last price	1.174
Today Daily Change	0.0042
Today Daily Change %	0.36
Today daily open	1.1698

Trends
Daily SMA20	1.1784
Daily SMA50	1.1839
Daily SMA100	1.196
Daily SMA200	1.2008

Levels
Previous Daily High	1.1704
Previous Daily Low	1.1664
Previous Weekly High	1.1801
Previous Weekly Low	1.1664
Previous Monthly High	1.1909
Previous Monthly Low	1.1752
Daily Fibonacci 38.2%	1.1689
Daily Fibonacci 61.8%	1.1679
Daily Pivot Point S1	1.1673
Daily Pivot Point S2	1.1648
Daily Pivot Point S3	1.1632
Daily Pivot Point R1	1.1713
Daily Pivot Point R2	1.1729
Daily Pivot Point R3	1.1754

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools

Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.