• EUR/USD is extending gains to test 1.0600 in the European session
  • The US dollar loses further ground amid a risk-on mood at full steam.
  • Markets re-price central banks’ tightening plans ahead of US data, Lagarde.

EUR/USD is nearing 1.06000, building onto the Asian rebound in the European session on Monday, as positive global momentum continues and weighs heavily on the safe-haven US dollar.

European stocks climb over 1%, taking the upbeat cues from their Asian and US peers, as investors rethink whether the central banks’ will continue with their aggressive rate-hike track, in the face of slowing economic growth.

Futures pricing shows traders now anticipating the US Fed’s benchmark funds rate stabilizing around 3.5% from March next year, a revision lower from peviously pricing in rates zooming to around 4% in 2023.

Risks of economic contractions in the US and Europe have risen sharply after Russia’s invasion of Ukraine caused consumer prices to surge worldwide, which was well reflected in June business PMI reports released on both sides of the Atlantic last week.

Despite the bullish momentum, buyers seem to be struggling over the last hour, as the rally in the US Treasury yields could be hindering EUR/USD’s journey towards 1.0600.

Attention now turns towards the first-tier US Durable Goods Orders data due on the cards later in the NA session, followed by the Pending Home Sales for a fresh take on the American economic health. Additionally, ECB President Christine Lagarde’s opening remarks at the central bank’s three-day Forum in Sintra this week will be closely eyed.

The main event risk, however, this week will be the policy debate between the chiefs of the Fed, BOE and ECB at the Sintra Forum on Wednesday.

EUR/USD technical levels to consider

EUR/USD

Overview
Today last price 1.0585
Today Daily Change 0.0029
Today Daily Change % 0.27
Today daily open 1.0555
 
Trends
Daily SMA20 1.0594
Daily SMA50 1.0604
Daily SMA100 1.0848
Daily SMA200 1.1138
 
Levels
Previous Daily High 1.0571
Previous Daily Low 1.0512
Previous Weekly High 1.0606
Previous Weekly Low 1.0469
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0549
Daily Fibonacci 61.8% 1.0535
Daily Pivot Point S1 1.0521
Daily Pivot Point S2 1.0487
Daily Pivot Point S3 1.0462
Daily Pivot Point R1 1.058
Daily Pivot Point R2 1.0605
Daily Pivot Point R3 1.0639

 

 

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