EUR/USD jumps above 1.09 as DXY remains under pressure

Eren Sengezer FXStreet

The EUR/USD pair was able to catch a fresh buying wave in the early American session as the greenback continues to have a tough time finding demand amid mixed macro data. As of writing, the EUR/USD pair was trading at 1.0919, up 0.5% on the day.

Although the US Dollar Index was able to rise above the 99 mark during the early trading hours of the European session, it couldn't extend the bullish momentum as the participants continued to lean towards European currencies, cheering the first round of French presidential election result for the second day in a row. The latest data from the United States revealed that both FHFA and S&P/Case-Shiller House Price Indexes recorded higher than expected growths while the consumer confidence eased to 120.3 from 125.6.

The economic docket doesn't feature any macro data that could have a significant impact on the price action of the EUR/USD pair until Thursday's ECB interest rate decision. The market sentiment and expectations regarding the second round of the French presidential election on May 7 could remain as main catalysts in the near-term.

Technical levels to consider

The initial resistance for the pair is located at 1.0925 (daily high) ahead of 1.10 (psychological level) and 1.1065 (Nov. 8 high). To the downside, the first short-term support could be seen at 1.0820 (Monday's low) followed by 1.0785 (200-DMA) and 1.0740 (Mar. 29 low).

The euro has paused after the initial post-vote surge - Societe Generale

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.

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