- The US dollar falls across the board, DXY falls below 96.00, the lowest in four weeks.
- US yields at monthly highs are not helping the dollar.
- EUR / USD tests levels above the upper limit of the current range.
The pair EUR/USD It gained traction after the start of the US session due to a general decline in the US dollar and rose to 1.1368, reaching the highest level since November 30. A daily close above 1.1350 should be a positive technical development for the euro and the highest close in a month.
USD goes down, EUR / USD tries to break out of range
The dollar’s slide is pushing EUR / USD above a range that has been in place for a month. A consolidation above 1.1360 should point to a prolongation of the euro’s recovery.
Conversely, if the EUR / USD is rejected again from the current level, the sideways trading pattern around 1.1290 would remain intact. A daily close below the 20-day moving average, currently at 1.1300, would weaken the short-term outlook.
The dollar weakened even as US yields rose. US 10-year yields are 1.53%, up nearly 4%, and 30-year yields are 1.95%, the highest in a month. On Wall Street, stock prices are mixed, with the Dow Jones climbing 0.22% and the Nasdaq losing 0.08%.
Economic data released Wednesday in the US showed pending home sales fell 2.2% in November, versus expectations for a 0.5% increase. A different report showed that the progress of the Goods Trade deficit widened to 97.8 billion dollars in November, from 83.2 billion the previous month.
Low volume in financial markets remains the key essence of the last trading week of the year. On Thursday, the key economic figure will be jobless claims in the United States.
Technical levels
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