EUR / USD climbs to daily highs above 1.1330

• Dollar weakness against major European currencies boosts EUR / USD.
• The bullish tone looks dominant on the pair, although gains are limited below 1.1350.
• With no impact data ahead, low liquidity conditions prevail.

The EUR / USD is rising on Tuesday and just hit highs for the day at 1.1332. It remains in the 1.1330 area, with a bullish tone, but what predominates are the small runs. So far this day, the pair has traded in a range below 20 pips.

The last week of the year, limited with several holidays and part of the community that operates in the holiday financial markets, presents low volume. Even the economic calendar is light. The outgoing data on Tuesday will be the US Home Price Index, which is not expected to have an impact on the market.

The focus of attention continues on how the Omicron variant affects the different countries, and what happens with stocks and bonds. The year-end rally continues on Tuesday, with widespread gains in European equity markets and Wall Street futures.

The dollar index it is dropping 0.05% on Tuesday and testing the 96.00 zone where the weekly lows are. The DXY is correcting lower, for now, on a limited basis.

Limited below 1.1350

The bullish tone of the EUR / USD is still not enough, first to affirm above 1.1330 and then to go towards 1.1350. The increases of the euro are expected to remain weak, as long as it does not manage to exceed 1.1350, which is the key level.

From the current level, supports are seen at 1.1315 and below at the 1.1300 zone, where the bottom of the current range is. A confirmation at lower levels would point to further weakness, with a possible test at the 1.1260 level.

Technical levels