- The dollar falls modestly in the market at the start of the week.
- The euro without relevant changes, between holidays and before the ECB.
- EUR/USD in recent range, unable to break 1.0750.
The EUR/USD rallied as high as 1.0751 at the start of the European session but then lost momentum and pulled back to find support at the 1.0720 area. It is trading slightly positive for the day at 1.0725, moving within Friday’s price range.
Most currency pairs are trading relatively calm on Monday. The dollar loses ground, with the DXY down 0.15%, around 102.00. Treasury yields are up slightly and Wall Street futures are in the green. Germany’s 10-year bond hit new highs since 2014 at 1.30% before retreating.
In several European countries it is a holiday, which can reduce the volume of operations. The economic calendar shows no impact events ahead for Monday. In the US it will be a relatively quiet week, with the Fed entering the quiet period ahead of next week’s FOMC meeting. On Friday the retail inflation data for May will be published, which will be the most relevant data.
In the Eurozone, the focus will be on the meeting of the European Central Bank Thursday. Decisions on the purchasing program are awaited. Most believe that the end of the program will be announced and guidelines for a new one could be given to avoid large increases in government bond yields. In addition, the road could be left ready for a climb in July.
Focus on 1.0750
EUR/USD faces resistance at 1.0750, a horizontal level and also where the 55-day moving average passes. A clear above close could lead to a test of the May peak at 1.0786.
In the opposite direction, the first strong support looms at 1.0700, which if broken could quickly lead to a1.0675. Below that next support is at last week’s low at 1.0625. Then at 1.0615 comes the 20 day moving average.
Technical levels
Source: Fx Street
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