EUR/USD marks new daily highs in the 1.0635 area

• The dollar goes back through the market, stocks up, bonds down.
• EUR/USD is up more than 100 pips from Tuesday’s low.

The EUR/USD toaccelerated higher during the European session and climbed to 1.06358 reaching a new high for the day. In this way he extended the rebound after falling to 1.0519 on Tuesday, the lowest level in three weeks.

The pair’s advance is driven by dollar weakness throughout the market. The DXY is falling 0.70%, returning a large part of the gains from yesterday’s session. At the same time, Treasury yields are falling, contributing to the weak dollar.

Equity markets are advancing, with gains on average greater than 1% in Europe. This is another factor that plays against the dollar.

The economic calendar shows ahead for the US the publication of the report of the ISM manufacturing and then in the afternoon Federal Reserve will release the minutes of the last FOMC meeting.

The EUR/USD advance is erasing more than half of Tuesday’s losses. At the moment, the price is back above the 20-day moving average, which passes by 1.0610. The 1.0635 zone is important short-term resistance where the 20- and 55-period MAs converge on the four-hour chart. An advance above would give support to the euro to extend the rises. In the opposite direction, 1.0570 is the key support in the current bullish rebound, which, if it gives way, would leave the euro vulnerable.

technical levels