- The DXY extends losses below 93.00 amid risk appetite and falling yields.
- EUR / USD gains for the second day in a row, outside of multi-month lows.
The EUR/USD It fell back to 1.1735 after the release of the US data and resumed the move up. It recently hit 1.1775, the highest level since the Asian session on Tuesday. It remains at the top, backed by a weaker US dollar across the board.
A better than expected reading of the ISM Manufacturing Index added to the positive tone in markets on Thursday. The Dow Jones gains 0.48% and the Nasdaq 1.55%. 10-year US returns at 1.67%, a three-day low. The DXY fell below 93.00.
Short term outlook
The pair’s recovery eased the downward pressure. The trend continues to point to the downside, but after being able to defend the 1.1700 zone, the euro now has a positive outlook in the near term. More wins are on the cards above 1.1760. The next strong resistance is at the 1.1800 area.
On the other hand, at 1.1750 support is seen followed by 1.1730. The key area remains 1.1700 – a break to the downside could trigger further volatility and losses.
Technical levels
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