- Euro regains strength and is approaching last week’s highs against the dollar.
- The dollar falls before rises in the bags.
The EUR / USD extended the bounce from the 1.1735 area and climbed to 1.1783 peaking for the day and less than five pips from Friday’s peak. The rise was motivated by the weakness of the dollar. The greenback is under pressure due to a rise in the stock markets and some stability in the bond market.
The Wall Street futures point to an open with gains for the main indices around 0.60%. The 10-year Treasury rate is at 1.71%, far from the highs. The DXY failed to hold in positive territory and fell below 92.90. The dollar has lost momentum and continues to correct lower against most currencies including emerging markets.
Data from the US services sector will come out in minutes, with PMI Markit and ISM. In addition to the report of orders to the factory. Attention will also continue on what happens to stocks and the bond market.
From a technical point of view, EUR / USD continues to face a dominant bearish trend, although in the short term it is correcting upward. The next resistance is around 1.1805. A confirmation above would point to an extension of the bullish correction. In the opposite direction, at 1.1730 there is a support protecting the 1.1700 floor.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
