EUR/USD keeps moving sideways around 1.0600 as stocks jump
- US Dollar mix on Wednesday between higher US yields and risk appetite.
- Wall Street posts important gains: Dow Jones up by 1.70%.
- EUR/USD on a quiet range, moving near 1.0600.
The EUR/USD continues to move without a clear direction. It printed a fresh daily low at 1.0595 and then rebounded back above 1.0600.
The US Dollar is posting mixed results across the board. The rebound in US bond yields is being offset by risk appetite. The Dow Jones is up by 1.70% while the S&P 500 gains by 1.60%.
US data: one positive, one negative
Existing Home Sales dropped in November for the 10th straight month to an annual rate of 4.09 million, below the 4.20 million of market consensus. A different report showed the Conference Board Consumer Confidence Index rose in December to 108.3 beating market estimates.
Risk sentiment prevailed after the numbers and even US bond yields. The US 10-year bond yield stands at 3.68% after rebounding from 3.62% while the 2-year bond yield climbed from under 4.20% to 4.23%. In Europe, bond yields also rebounded, helping EUR/USD remain sideways. The Euro is also receiving support from the rally in EUR/GBP that trades at monthly highs above 0.8770.
EUR/USD sideways
Since the beginning of the week, EUR/USD is moving around 1.0610, in a range, with the upper limit at 1.0660 and the bottom at 1.0575. A consolidation below 1.0570 could open the doors to an extension of the correction after reaching levels above 1.0700 last week.
On the contrary, a firm break above 1.0660 should expose the 1.0700 mark that protects the December high at 1.0737.
Technical levels
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.
