EUR/USD firm above 1.0650, approaches last week highs

Matías Salord FXStreet

Euro outperformers its G10 rivals on Monday, EUR/GBP near weekly highs.
US Dollar losses momentum DXY drops to five-day lows.
EUR/USD looking again at the 1.0700 area.

The EUR/USD is up on Monday, moving toward last week's high and with 1.0700 again on the radar. A stronger Euro across the board has been supportive of the pair, while at the same time, the US Dollar weakened. EUR/GBP is back above 0.8800.

Stocks up, Treasury yields down

The Euro is outperforming on Monday among the G10 space despite lower-than-expected economic data. The Eurozone (EZ) Sentiment Investor Confidence index dropped in March to -11.1, against expectations of a slide to -8.6. EZ Retail Sales rose 0.3% in February, below the 1% increase expected of market consensus; on the positive, January’s -2.7% was revised to -1.6%.

In the US, Factory Orders in January fell by 1.6%, less than the decline expected of 1.8%. The Greenback rose marginally immediately after the report and then retreated.

Equity prices are up on Wall Street, with the Dow Jones gaining 0.42% and the Nasdaq 0.98%. At the same time, US yields are flat for the day. The improvement in market sentiment weighs on the US Dollar.

Market participants await key events ahead for the week that includes comments from Fer Chair Jerome Powell on Tuesday, and the NFP report on Friday.

A test of last week high looms

The EUR/USD is trading at daily highs above 1.0880, moving closer to 1.0690 (last week’s high) and also to the 1.0700/05 area. Technical indicators favor the upside but the Euro needs to break and consolidate above 1.0705 to open the doors to more gains.

The immediate support might be seen at 1.0640 (20-hour Simple Moving Average) followed by 1.0615 and an uptrend line at 1.0605 that should limit the downside on Monday.

Technical levels

EUR/USD

Overview
Today last price	1.0681
Today Daily Change	0.0046
Today Daily Change %	0.43
Today daily open	1.0635

Trends
Daily SMA20	1.0663
Daily SMA50	1.0726
Daily SMA100	1.0496
Daily SMA200	1.0329

Levels
Previous Daily High	1.0639
Previous Daily Low	1.0588
Previous Weekly High	1.0692
Previous Weekly Low	1.0533
Previous Monthly High	1.1033
Previous Monthly Low	1.0533
Daily Fibonacci 38.2%	1.0619
Daily Fibonacci 61.8%	1.0608
Daily Pivot Point S1	1.0603
Daily Pivot Point S2	1.057
Daily Pivot Point S3	1.0552
Daily Pivot Point R1	1.0653
Daily Pivot Point R2	1.0671
Daily Pivot Point R3	1.0703

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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