EUR/USD at highest since July and near 1.0500

• The euro is among the currencies that rise the most on Monday.
• The dollar loses ground after a positive start.
• EUR/USD aims to test month highs and eyes 1.0500.

EUR/USD topped the previous November high by a spike, reaching the highest level since early July, supported by a firm euro across the market. At the same time, the dollar, which had started the week higher on all fronts, turned around and lost ground.

The euro stands out

The common European currency is among the best performers on Monday after rising sharply across the market in recent hours, buoyed by comments from officials at the European Central Bank (ECB). Klass Knot, the president of the central bank of the Netherlands, said the ECB faces the risk of not adjusting enough to deal with inflation. He added that an economic slowdown is needed to cool prices.

Later on Monday, the ECB president will speak before the European Parliament’s Committee on Economic and Monetary Affairs. In the US, normal activity will return after Thanksgiving. The Dallas Fed manufacturing report will be released and will feature New York Fed President John Williams.

Looking at 1.0500

The EUR/USD advance has put the pair to some pips of 1.0500, which is the next level of relevance, followed by 1.0525/30. The bullish tone remains intact despite the non-stop advance of the last few hours. From the low of the day, the pair climbed more than 130 pips. It went from a minimum in four days to a maximum in months.

A return below 1.0430 would weaken the Euro, suggesting a further pullback in EUR/USD. Next support is seen at 1.0395 and then 1.0360, before the daily low at 1.0340.

technical levels