The EUR/USD has advanced about 55 pips so far this Tuesday, rising from around 1.2045 / 50 at the start of the Asian session to new eight-day highs after the European open at 1.2103.
The risk appetite has returned to the markets, which is affecting the demand for the dollar, benefiting other assets such as the euro. The DXY index that measures the greenback today falls to 90.60, its lowest level since February 1. Yields on US bonds are currently above 1.15%, falling from 1.196% in the last 24 hours.
While following the optimism about the stimulus plan proposed by the President of the United States, Joe Biden, and on the increase in the rate of vaccination, the economic calendar barely presents data today. Germany published its trade balance and current account data for December in the European morning, both below expectations. The United States will later release the January Business Confidence NFIB, while Richard Lane, a member of the Executive and Economic Board of the European Central Bank, awaits a speech.
EUR / USD levels
With the pair trading above 1.2097 at time of writing, gaining 0.38% on the day, the next upside resistance awaits at the 1.2130 / 35 zone, where the February 1 highs are. Further up there is another resistance at 1.2156, the high of January 29, before reaching 1.2189, the high of January 22.
To the downside, the first support is at yesterday’s low, 1.2019. In case of falling below 1.2000, the next relevant level will be at 1.1952, the bottom of February 5.
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