EUR / USD hits daily highs near 1.1920, looking at US yields.

• EUR / USD leaves the negative start behind and picks up 1.19.
• The dollar loses control and falls to session lows.
• EMU retail sales expanded 3.0% month-on-month in February.

The single currency vanished the initial offered bias and regained its composure, raising the EUR/USD again above 1.19 at the beginning of the week.

EUR / USD focused on US 10-year auction

EUR / USD so far reverses Friday’s slide and picks up the 1.1900 level after the renewed selloff surrounding the dollar. The pair’s rise now points to monthly highs near 1.1930 recorded on April 8.

In fact, the dollar cuts early gains despite the positive performance of US 10-year yields, which are now approaching the 1.68% level ahead of the key auction scheduled for later on Monday.

On the euro list, Retail Sales in the euro area expanded 3.0% month-on-month in February and contracted 2.9% in the last twelve months.

What to look for around EUR

EUR / USD finally managed to break above the 1.19 level and hit fresh 2-week highs around 1.1930 over the past week, although the move lost some steam soon after. However, the short term outlook appears to have improved and it would not be surprising to see a sustainable advance above 1.1900 in the coming sessions. The pair’s recovery came in response to a new pessimistic sentiment in the dollar and growing hopes for a sustained recovery in the Old Continent now that the launch of the vaccine appears to have gained some momentum.

Technical levels

At the moment, the index is gaining 0.13% to 1.1912 and faces the next bullish barrier at 1.1927 (weekly high on April 8) followed by 1.1989 (weekly high on March 11) and finally 1.2000 (psychological level). On the downside, a breakout of 1.1704 (March 31 low) would target 1.1602 (November 4 monthly low) en route to 1.1570 (2008-2021 support line).