- The DXY declines returning below 90.00 as US yields fall.
- EUR / USD returns by climbing above the 20-day moving average.
The EUR/USD it traded in a small range for most of the day and broke higher during the US session, climbing towards 1.2200. The euro is now rising for the second day in a row against the US dollar and is returning above the 20-day moving average.
At time of writing, the EUR / USD is trading at daily highs at 1.2195, almost a hundred pips above Friday’s levels. The rally came amid a decline in the US dollar across the board. The dollar has not been able to recover from the NFP report released on Friday that caused a slide.
US yields are at new daily lows, with the 10-year yield at 1.56%, moving away from the daily high of 1.58%. On Wall Street, the Dow Jones lost 0.31% and the Nasdaq 0.08%. Despite the deterioration in risk sentiment, the dollar remained under pressure.
EUR / USD returns above the 20 SMA
The EUR / USD rally of the last two days pushed the price back above the 20-day moving average of 1.2175. On the upside, immediate resistance is seen at 1.2200 followed by 1.2225. A daily close above 1.2230 would point to higher gains. On the other hand, a drop below 1.2150 would negate the current reversal, exposing the 1.2100 area.
Technical levels
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