EUR/USD rises to 1.1470 as the US Dollar retreats

Euro extends gains versus a weak US dollar, rises to highest since last Wednesday.
Weaker-than-expected US data adds to negative tone toward greenback.

Matías Salord FXStreet

The EUR/USD rose further during the American session and printed a fresh daily at 1.1471, reaching the strongest since January 2. Price remains near the top with a strong bullish tone.

The euro is rising for the third trading day in a row against the US dollar and heads for the highest close since late October. The rebound from the 1.1300 zone, paused on Friday after the NFP report. EUR/USD erased losses on Friday and resume the upside today.

The greenback is down across the board on Monday. US data released today failed to offer support to the dollar. The ISM non-manufacturing PMI dropped to 57.6 in December, a number significantly below expectations. The US Dollar Index extended the decline and as of writing stands at 95.75, on its way to the lowest close since October 19.

Technical levels to consider

The EUR/USD is holding above 1.1450, near the upper limit of a range. A break of daily highs could point to a test of the 1.1500 area: a consolidation above the last one would be a positive signal for the euro, pointing to further gains over the next days.

On the flip side, a failure here would signal that the range continues to prevail. Supports levels are seen at 1.1420, 1.1380 (20-day moving average) and 1.1340/45 (Jan 4 low).

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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