• Euro gains as European yields move higher.
  • US dollar weakens as markets avoid a correction after last week’s rally.
  • EUR/USD rises back above the 20-day SMA.  

The EUR/USD rose further during the American session and climbed to 1.0614, reaching the highest level in two weeks. The euro was unable to consolidate above 1.0600 and pulled back underneath the psychological level, still holding onto holding daily gains.

The improvement in risk sentiment weakened the greenback. The DXY is falling 0.25% on Monday, trading at 103.85. US bond yields are modestly higher, but European yields rose even further. The German 10-year yield jumped 7% to 1.54%. The divergence helped EUR/USD to move higher.

US economic data came in above expectations, with Durable Goods Orders and Pending Home Sales rising more than market consensus. The dollar did not benefit from the numbers. On Thursday, the Core PCE is due.

In Portugal, the European Central Bank started its annual conference. The highlight will be on Wednesday with a panel including ECB President Lagarde, Bank of England’s Governor Bailey and Fed’s Chair Powell.

Bullish short-term outlook

The EUR/USD is trading above 1.0580 but is showing difficulties running above 1.0600. The euro is back above the 20-day Simple Moving Average (1.0588). A daily close above 1.0600 should strengthen the recovery. The 55-day SMA awaits at 1.0620.

A decline under 1.0580 would alleviate the bullish pressure. The next support might be located at 1.0530, followed by 1.0490.

Technical levels

EUR/USD

Overview
Today last price 1.0599
Today Daily Change 0.0044
Today Daily Change % 0.42
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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