- The dollar maintains a tone of weakness in the face of stable yields and a rise in stock markets.
- The euro at weekly highs against the franc and the pound.
- EUR/USD with an intraday bullish bias, above 1.0055 it appears 1.0090.
EUR/USD is rising for the second day in a row and continues to bounce back after approaching 0.9900 on Monday. The pair recently hit as high as 1.0054, the highest level since Friday. It remains near the highs with a very short-term bullish tone.
The dollar is retreating in the market on Tuesday, which is giving EUR/USD support to move forward. This happens in the face of a decline in Treasury bond yields and a rise in equity markets.
In addition to the above, the euro is still strong. The common currency, in addition to rising against the dollar, is at its highest in three weeks against the Swiss franc, and in more than a month against the pound. The continuity of comments in favor of continuing with rate hikes in the Eurozone supports the euro. Tuesday was Philip Lane’s comments.
With regard to data, a drop in the economic confidence indices for the Eurozone was known. Germany’s preliminary inflation reading for August will be released later. In the US, the data on the housing price index and consumer confidence will come out.
short-term outlook
EUR/USD has a bullish bias in the very short term and if it continues above 1.0030 it could point to more gains. A drop below 0.9980 would anticipate further weakness and a test of 0.9950 first, followed by current week’s low at 0.9910. On the upside, above the high of 1.0050, comes Friday’s peak at 1.0090.
Technical levels
Source: Fx Street
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