EUR / USD extends advance and tests 1.2300

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  • The dollar retakes its falls, DXY falls 0.50% and sets new lows in two years.
  • EUR / USD bounces off Thursday’s pullback and aims to test December highs.

The EUR / USD is rising significantly at the start of 2021, climbing 0.65% so far this day, mainly supported by the weak dollar. The price is testing the 1.2300 area and is trading very close to the highest in years reached last week.

He Last Wednesday the EUR / USD reached 1.2311, the highest level since April 2018 and then fell back to 1.2210. On Monday, the dollar shows renewed weakness that boosted the pair. The high of the day reached it at 1.2300 and is trading at 1.2293, with the bullish tone intact.

Stock markets in the world are rising. In Europe, the main squares climb between 1% and 2.70%. Wall Street futures point to an opening at new record highs, with gains in the order of 0.50%. The advance of vaccination for the coronavirus is curbing fears about the rise in cases and restrictive measures.

The dollar is the worst performing currency on the market. The dollar index (DXY) falls 0.50% and is at a two-year low, trading below 89.50. The greenback is not even managing to rise against the yen. The Japanese currency tends to weaken in a context of appetite for risk.

Looking ahead to the next few hours, the key is to wait for what the dollar and stocks do on Wall Street. In terms of data, the IHS Markit PMI US manufacturing report for December (final reading) and also the construction report for November will be released. Regarding speeches, in a virtual event will speak the president of the Federal Reserve of Atlanta Raphael Bostic, the one of the Chicago Fed, Charles Evans, and the one of the Cleveland Fed, Loretta Mester.

Technical levels

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