EUR/USD Limited Upside – Hits Daily Highs at 0.9770 and Pulls Back

  • The dollar falls throughout the market at the beginning of the week.
  • Treasury yields down modestly, stocks up.
  • EUR/USD remains in a recent range, between 0.9700 and 0.9800.

For hours the EUR/USD has been trading around 0.9750. It peaked at 0.9770 which was followed by a pullback. The pair remains trading in ranges, with a slightly bullish bias on Monday, supported by the weakness of the dollar.

Limited, with support

The US Dollar Index (DXY) is down 0.30% on Monday, giving support for EUR/USD gains. Also yields on Treasury bonds are falling. The 10-year tranche yields 3.94%, and 4.44% for two years.

Wall Street futures point to a positive open with gains around 1%. The better mood in the markets is another factor that contributes to the weakness of the dollar.

On Monday there was no impact data and the economic calendar shows the Index ahead Manufacturing Empire October. The novelty was the return to fiscal measures in the United Kingdom.

Technically the dominant trend of the EUR/USD is still bearish. And for more than a week it has been moving in ranges, now in a higher one, going from 0.9660/0.9715 to 0.9710/0.9800.

A firm rally above 0.9800 could enable a bullish extension, while short-term below 0.9700 weakness could return to test 0.9670 and last week’s low at 0.9628.

Technical levels

EUR/USD

Overview
Today last price 0.9749
Today Daily Change 0.0026
Today Daily Change % 0.27
Today daily open 0.9723
trends
Daily SMA20 0.9787
Daily SMA50 0.9948
Daily SMA100 1.0162
Daily SMA200 1.0578
levels
Previous Daily High 0.9809
Previous Daily Low 0.9707
Previous Weekly High 0.9809
Previous Weekly Low 0.9632
Previous Monthly High 1.0198
Previous Monthly Low 0.9536
Daily Fibonacci 38.2% 0.9746
Daily Fibonacci 61.8% 0.977
Daily Pivot Point S1 0.9684
Daily Pivot Point S2 0.9644
Daily Pivot Point S3 0.9582
Daily Pivot Point R1 0.9785
Daily Pivot Point R2 0.9848
Daily Pivot Point R3 0.9887

Source: Fx Street

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