EUR/USD preserves daily gains above 1.1850 amid upbeat mood
- EUR/USD off the highs but holds firmer above 1.1850.
- Risk-on mood-led DXY weakness outweighs the T-yields rebound.
- ECB sets a symmetrical inflation target in its strategic review.
EUR/USD is stalling its two-day recovery heading into the weekly closing this Friday, as the US dollar sees a minor bounce, courtesy of the London fix.
Despite the pullback, the main currency pair holds a major part of the intraday gains while holding above the 1.1850 level. The spot is currently trading at 1.1862, up 0.16% on a daily basis, having hit a two-day high of 1.1875 in the last hour.
The upbeat market mood continues to undermine the US dollar’s safe-haven demand, lending support to the major, as the bulls remain defiant to the solid recovery in the US Treasury yields.
The major rebounded from three-month lows of 1.1782 on Thursday after the European Central Bank (ECB) adopted a symmetric 2% inflation target in its strategic review meeting.
Meanwhile, the Fed’s Monetary Policy Report revealed that the upside risks to the inflation outlook in the near term have increased. Though the greenback showed little reaction to the report, as it remains at the mercy of the risk sentiment.
EUR/USD: Technical levels
“Some support awaits at 1.1825, the daily low. It is followed only by the new July trough of 1.1781. Further down, 1.1740 and 1.1717 are the next lines to watch. Some resistance is at 1.1875, which is the weekly high. It is followed by 1.1895, the monthly high, followed by 1.1950 and 1.1975, FXStreet’s Senior Analyst Yohay Elam explains.
EUR/USD: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
