- The dollar retreats and the DXY is approaching 91.00.
- EUR / USD regains ground after losing nearly 100 pips on Friday.
EUR / USD is rising on Monday after Friday’s sharp decline, and is trading above 1.2050, with the bullish tone intact, in a day, for the moment of limited volume, due to the holiday in several countries, including the United Kingdom. Dollar weakness is the key support.
Dollar weakness above all
The greenback is correcting down on almost all fronts. In the G10 group it only rises against the CAD and JPY (although far from the maximums). This is despite the rise in Treasury bond yields.
In the next few hours, the April report will be published. IHS Markit Manufacturing and the ISM Manufacturing Index. Also speaking will be Jerome Powell, Chairman of the Federal Reserve, John William of the New York Fed and Robert Kaplan, of the Dallas Fed.
In the Eurozone, the final reading of the PMI Markit for April was released, which showed a downward revision and a higher than expected rise in German retail sales. The euro was not affected by the data.
From a technical point of view, the EUR / USD to extend the rally will face resistance at the 1.2060 / 65 area, and a confirmation above would point to more rises in the short term, with the next strong barrier at 1.2090. In the opposite direction, 1.2045 can be seen as the first support and then follows the 20 hour moving average at 1.2030. A fall below the latter would change the intraday bias to bearish.
Technical levels
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