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EUR/USD hits two-week highs above 1.0600

  • Euro gains as European yields move higher.
  • US dollar weakens as markets avoid a correction after last week’s rally.
  • EUR/USD breaks above the 20-day SMA again.

The EUR/USD It continued to rise during the American session and reached the 1.0614 level, reaching the highest level in two weeks. The Euro was unable to consolidate above 1.0600 and pulled back below the psychological level, although it continues to hold daily gains.

Improved risk sentiment weakened the USD. DXY is down 0.25% on Monday and is trading at 103.85. US bond yields up modestly, but European yields up even more. German 10-year bond yields rose 7% to 1.54%. The divergence helped EUR/USD rise.

US economic data beat expectations as Durable Goods Orders and Pending Home Sales rose more than market consensus. The dollar did not benefit from these figures. On Thursday the underlying PCE will be published.

In Portugal, the European Central Bank started its annual conference. The main course will be on Wednesday with a panel that includes ECB President Lagarde, Bank of England Governor Bailey and Fed Chairman Powell.

Short-term bullish outlook

EUR/USD is trading above 1.0580 but is struggling to break above 1.0600. The euro has again exceeded the 20-day simple moving average (1.0588). A daily close above 1.0600 should reinforce the recovery. The 55-day SMA awaits at 1.0620.

A decline below 1.0580 would ease the upside pressure. Next support could be at 1.0530, followed by 1.0490.

Technical levels

EUR/USD

Panorama
Last Price Today 1.0588
Today’s Daily Change 0.0033
Today’s Daily Change % 0.31
Today’s Daily Opening 1.0555
Trends
20 Daily SMA 1.0594
50 Daily SMA 1.0604
100 Daily SMA 1.0848
200 Daily SMA 1.1138
levels
Previous Daily High 1.0571
Previous Daily Minimum 1.0512
Previous Maximum Weekly 1.0606
Previous Weekly Minimum 1.0469
Monthly Prior Maximum 1.0787
Previous Monthly Minimum 1,035
Daily Fibonacci 38.2% 1.0549
Daily Fibonacci 61.8% 1.0535
Daily Pivot Point S1 1.0521
Daily Pivot Point S2 1.0487
Daily Pivot Point S3 1.0462
Daily Pivot Point R1 1,058
Daily Pivot Point R2 1.0605
Daily Pivot Point R3 1.0639

Source: Fx Street

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