- The dollar remains weak, the stock markets continue to rebound.
- EUR/USD looks to extend gains but remains capped by 1.0600.
- Ahead: Eurozone consumer confidence data.
EUR/USD hit daily highs at 1.0599 on Friday after finding support twice at the 1.0555 area. The pair is moving sideways, retaining a bullish bias but capped by 1.0600, supported by dollar weakness.
USD down, stocks up
European markets improve face and show significant rises. The DAX rises 1.80% and the CAC 40 1.20%. Wall Street futures point to gains of around 1.2%. This better tone helps keep the dollar somewhat weak. The DXY falls again and trades just above the weekly low in the 102.80 area. Treasury and German bond yields rise on Friday.
The Friday there will be no US impact data. so the focus could continue on what happens on Wall Street. The preliminary estimate of consumer confidence from the European Commission for May will be released from the Eurozone.
The EUR/USD trades with a slight gain, which leads it to have the fifth rise considering the last six days. The very short-term technical picture remains positive for the Euro, although it will need to break above 1.0600 to enable further rally, with the next target at 1.0640/45, where May is.
Of not being able to with 1.0600 the euro could lose moment. The first support is at 1.0555 and then 1.0510. Por below then 1.0490 appears (short-term uptrend line), qIf it were to give way, it would leave the euro vulnerable and without an upward bias.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
