- EUR / USD bounced and erased almost all of Monday’s decline.
- The dollar corrects down, yields as well.
The EUR / USD is rising on Tuesday, snapping off a four-day streak of declines. The pair reached the highest level at 1.1909 and remains above 1.1900 for now, in a context of rising stocks and correction of the dollar and Treasury bonds.
The Wall Street futures point to a positive opening and in Europe the markets operate in green with gains in the order of 0.5%. In the bond market, Treasury yields are declining, the 10-year rate fell to 1.53%, the lowest level since March 4.
The aforementioned context favored a downward correction of the US dollar. The DXY index reached 92.50 in the Asian session, the highest level since the end of November and is now just above 92.00, falling after four days of rises.
Without economic impact data ahead, the market is preparing for the meeting of the European Central Bank from Thursday. On Tuesday, the US House of Representatives could approve the fiscal stimulus package. Traders will keep a close eye on what happens to yields and stocks on Wall Street.
From the point of view, EUR / USD continues with a bearish bias but on Tuesday in the very short term it is correcting higher, from the support of 1.1835. In case of extending the raises, the next important barrier can be seen at 1.1950. A drop below 1.1860 would tone it down in favor of the intraday euro. A close below 1.1835 would reaffirm the bearish bias by exposing 1.1800.
Technical levels
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