EUR/USD rebounds from 1.1880 toward daily highs as DXY holds onto losses

Upside correction in EUR/USD unable to make a run clear above 1.1900.
US Dollar trims losses but remains under pressure on Tuesday.

Matías Salord FXStreet

The EUR/USD is holding onto daily gains on Tuesday, ending a four-day negative streak. The pair peaked on European hours at 1.1914 and pulled back, finding support at 1.1880. As of writing, it is trading at 1.1895, with a bullish intraday bias.

Dollar and yields correct lower

As US yields move off recent highs, the greenback also retreats. The DXY peaked earlier today at the highest level in months at 92.50, and now is it hovering around 92.00. Simultaneously, the 10-year US yield stands at 1.53%, down 4.13% for the day.

Also, the improvement in risk sentiment is keeping the US dollar under pressure. On Wall Street, the Dow Jones gains 0.55% and the Nasdaq 2.67%, recovering after Monday’s slide. Also, silver and gold are sharply higher.

Markets are correcting the recent moves favoring the rebound in EUR/USD. Still, the move is seen as a correction and not as an end of the US dollar run. Regarding the pair, if it rises above 1.1.950, it would further alleviate the bearish pressure, while above 1.2070 could signal an improvement of the euro’s outlook.

Market participants continue to focus on the bond market and in Wall Street. A key event ahead if the European Central Bank on Thursday.

Technical levels

EUR/USD

Overview
Today last price	1.1901
Today Daily Change	0.0056
Today Daily Change %	0.47
Today daily open	1.1845

Trends
Daily SMA20	1.208
Daily SMA50	1.2124
Daily SMA100	1.204
Daily SMA200	1.1825

Levels
Previous Daily High	1.1932
Previous Daily Low	1.1845
Previous Weekly High	1.2113
Previous Weekly Low	1.1893
Previous Monthly High	1.2243
Previous Monthly Low	1.1952
Daily Fibonacci 38.2%	1.1878
Daily Fibonacci 61.8%	1.1899
Daily Pivot Point S1	1.1816
Daily Pivot Point S2	1.1787
Daily Pivot Point S3	1.1729
Daily Pivot Point R1	1.1903
Daily Pivot Point R2	1.1961
Daily Pivot Point R3	1.199

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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