EUR/USD advances to fresh 10-day high above 1.1450 as DXY drops below 96
- US Pres. Trump voices his displeasure about rate hikes.
- Fed's Bostic says they are worried about the flattening yield curve.
- US Dollar Index drops below 96 for the first time since Aug. 10.
The EUR/USD pair gained traction in the last hour and rose to its highest level in ten days at 1.1462 as it took advantage of the broad-based greenback weakness. At the moment, the pair is trading at 1.1460, adding 0.2% on the day.
Although it looked like the pair was having a hard time finding direction amid a lack of macroeconomic data releases on Monday, it easily broke above its daily trading channel after Bloomberg reported that US President Trump, in an event on Friday, complained about the Fed's rate hikes to wealthy Republicans and said that he expected Jerome Powell to be "a cheap-money Fed chairman."
Furthermore, Atlanta Fed President Raphael Bostic argued that although the inverted yield curve did not necessarily guarantee that a recession would occur, the Fed was worried about the fact that the yield curve was flattening. Pressured by these comments, the US Dollar Index fell to 95.94 and was last seen at 95.98, where it was down 0.15% on the day.
Technical levels to consider
The pair could face the immediate resistance at 1.1500/1.1510 (psychological level/20-DMA) ahead of 1.1615 (Aug. 9 high) and 1.1700 (psychological level/100-DMA). On the downside, supports align at 1.1395 (daily low), 1.1300 (Aug. 15 low) and 1.1200 (psychological level).
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.
