EUR/USD hits daily highs above 1.0460 on dollar weakness

• The dollar falls moderately at the start of the week.
• No activity in the US due to a holiday.
• EUR/USD is bullish intraday, but still faces an overall downtrend.

A weak dollar is boosting EUR/USD on Monday, in a low volume session due to the US holiday. The pair is trading at the daily highs near 1.0460, starting the week positive after having tested the floor of 2022 on Friday.

dollar down

Wall Street will not operate on Monday as it is a holiday in the United States, which may contribute to limiting tours in the market. Stock futures are on neutral ground.

The dollar starts the week with a moderate fall, which is being the main factor in the rise of the EUR/USD. DXY is down 0.27% and is below 105.00.

In the Eurozone The Sentix Investor Confidence Index was released, posting a larger-than-expected drop in July from -15.8 to -26.4. Another report showed a rise in the producer price index of 0.7% in May, below the expected 1% increase; the annual rate went from 37.2% to 36.3%. Later on Monday, Frank Elderson and Luis de Guindos of the European Central Bank will speak publicly.

From the US there will be no data. The key in the week will go through the FOMC minutes on Wednesday, the ADP report on Thursday and the official employment report for June on Friday.

Recovery, for now limited

EUR/USD is pulling away from Friday’s low of 1.0364. Since then it bounced almost 100 pips. But still he can’t leave behind the dominant negative tone. In front it has a resistance at 1.0470 and then at 1.0490. A confirmation above 1.0500 would ease downside pressures.

In case of losing momentum, the first support appears at 1.0435, followed by 1.0420. Below then follows 1.0380. A drop below will expose the low for the year around the 1.0350 area.

Technical levels