- The euro confirms gains against the dollar for the second consecutive day.
- The dollar looks weak despite rising yields and a cautious tone in the stock markets.
After a small correction, EUR / USD rebounded and rose to test the day’s highs at the 1.1640 zone. The euro is rising for the second day in a row, extending the recovery from lows in more than a year, reached last week at 1.1561.
The pair momentum comes on the side of dollar weakness. The DXY falls 0.40% and is trading below 93.70, prolonging the decline after reaching 94.50 last week. This is despite a rise in US Treasury yields. The 10-year rate is 1.50%.
On Wall Street, the Dow Jones operates on neutral ground, while the Nasdaq loses 1.40%. The focus of the operators’ attention is on the negotiations in Congress for the legal limit on indebtedness and the negotiations between legislators for the infrastructure package.
In terms of data, it will be a busy week, ending on Friday with the employment report. On Monday, the August factory orders report was released, which showed a rise of 1.2%, higher than the 0.9% expected.
Resistance at 1.1640 and 1.1680
EUR / USD is facing resistance at 1.1640, which is reinforced by a short-term bearish line. Above, the next level to break will be 1.1680. In the opposite direction, immediate support is now at 1.1610 and below at 1.1585, which protects last week’s bottom of 1.1560.
Technical levels
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