EUR / USD bounces above 1.2100, seems to break two-week losing streak

  • EUR / USD reversed its course after falling to the 1.2080 zone.
  • The US dollar index lost traction and remains below 90.50.
  • Disappointing data on US consumer sentiment kept USD gains limited.

The pair EUR/USD it spent European trading hours in a tight range near 1.2100, but lost its traction early in the US session and hit a daily low of 1.2082. However, the pair experienced a rebound and was last seen trading at 1.2125, where it was virtually unchanged on the day. On a weekly basis, the EUR / USD remains on track to close in positive territory.

Rising US Treasury yields gave the dollar a boost in the second half of the day. With the 10-year US Treasury yield rising as much as 2%, the US Dollar Index (DXY) advanced to a daily high of 90.72.

However, after monthly data released by the University of Michigan showed that the Consumer Sentiment Index dropped to 76.2 in February’s preliminary reading from 79 in January, the DXY turned south and erased its gains. For the moment, the index is unchanged on the day at 90.42.

Technical perspective

Los analistas of Credit Suisse they think that the 55-day SMA at 1.2146 and the resistance at 1.2190 will continue to limit the pair’s upside in the near term.

“Support remains at 1.2113 / 08 initially, below which is needed to see a full minor top to add weight to our short-term range roadmap for a pullback to 1.2088, with 1.2046 / 19 ideally holding further weakness. “added the analysts. “A breakout would raise the outlook for a longer corrective phase and further weakness to 1.1978 before a retest of the recent low and a 23.6% retracement of the entire 2020/2021 uptrend at 1.1952 / 45.”

Additional levels

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