- The dollar regains strength in the American session on Monday.
- Treasury yields bounce from daily lows.
- EUR/USD does not move away from the 1.0830 zone.
The EUR/USD operates around 1.0830 and remains in the ranges of the last days. At the start of the week, the pair had exceeded the previous maximum by very few pips and reached 1.0873 (a level not seen since April 2022), after which a decline began, which extended to 1.0800.
With respect to Friday’s close, the pair is operating on neutral ground. In fact, since Thursday it has not moved significantly away from the 1.0830 level, which is acting as a center of gravity for these sessions.
In the very short term, EUR/USD faces resistance at 1.0835, where is the 20 hour moving average. Above will follow the 1.0865/70 area. In the opposite direction, from losing 1.0800, 1.0775 emerges as strong support.
A breather for the dollar
The dollar’s rise on Monday came after the DXY hit fresh seven-month lows. It was accompanied by a deterioration in the mood of the markets. Wall Street futures show falls of around 0.30%. The bond market will not operate normally because it is Martin Luther King Jr.
The EUR/USD looks comfortable for these hours in the area of ​​maximums in months. The main driver of the rally has been the weakness of the dollar, given the expectations that the Federal Reserve will begin to soften its monetary tightening policy, already in the February meeting.
At the same time, the euro is strengthened by signs that the European Central Bank will continue to raise rates considerably. On Monday it was the turn of Olli Rehn, member of the ECB Governing Council, who stated that he sees significant increases in the upcoming meetings.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
