- The euro recovers against the dollar from lows in days.
- Optimism in markets offers support to the EUR/USD.
- War in Ukraine remains the focus, on Wednesday Fed decision.
The EUR/USD is rising at the start of the Federal Reserve meeting week, fueled by rising markets. The pair went from trading below 1.0900 in Asian hours to recently hit 1.0990, the fresh high of the day.
The dollar presents mixed results. The DXY loses 0.23%, although the dollar is trading at its highest in years against the yen and positive against currencies linked to commodities. The rise in Treasury bond yields is giving support to the dollar. While commodities retreat on Monday, taking strength from other currencies.
Stocks are on positive ground. In Europe, the main stock markets rise between 0.5% and 2.40%. The yield on the German 10-year bond exceeded 0.35%, reaching the highest since the end of 2018. While in the same section of the US it is at 2.10%, the maximum since July 2019.
The focus remains on the war in Ukraine. As far as data is concerned, the economic calendar looks light on Monday. On Tuesday there will be reports of industrial activity for February from China and wholesale inflation data from the US On Wednesday the decision of the Federal Reserve will be known.
EUR/USD bearish, although without much pressure
The EUR/USD in the short term continues to show a bearish bias, although it recovered levels that can now be seen as support at 1.0940 and then below it follows the 1.0895/1.0900 area. Breaking this last level will increase negative pressures.
On the upside, at 1.1000 is the first major resistance, which if it asserts itself above it will leave the euro stronger. Then 1.1020 follows and then 1.1065/70 appears on the scene, a strong barrier.
Technical levels
Source: Fx Street
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