- EUR / USD bulls take bearish commitments from support.
- A retest of support may open prospects for a continuation to the upside.
The pair rose in the American session to 1.2156 after traveling from a low of 1.2126 and a high of 1.2168.
The EUR/USD It has been in a strong uptrend since the end of March, as the US dollar has soured against risky markets due to the prospects for a global recovery.
However, the dollar will not go down without a fight and has shown signs of strength early in the week as new restrictions in Asia to contain COVID-19-backed safe-haven currencies, while bitcoin extended its slide.
The slight tone of risk has pushed the JPY higher and left the USD mixed in the crosses and slightly weaker in the new session as measured by the DXY index, which is currently down 0.15% at the time of writing. Article.
In general, focusing on the dollar, the publication of the US Consumer Price Index figures. May 12 sparked a dollar rally as investors began to doubt how long the Federal Reserve will be able to maintain its ultra-dovish stance.
Regarding the positioning of the dollar in the futures market, the net short positions in USD accumulated to excessive levels in the data according to the CFTC report.
There was a small contraction that probably occurred in the spot market, although it has now been replenished by the bulls in EUR / USD moving towards the May highs.
Heading into the week, it is expected to be relatively quiet for economic data.
However, investors will be eager to see the Minutes on Wednesday from the Federal Reserve’s policy meeting last month.
Markets will be looking for more light on policymakers’ outlook for an economic rebound and clues on their thinking about inflation spikes and the ongoing economic recovery.
EUR / USD technical analysis
Still, the dollar is struggling to gain momentum and the euro is now above a key technical level as follows:
Daily chart
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