- The dollar with time at the beginning of the week of the Fed.
- Yields on Treasury bonds rise and so do European ones.
- EUR/USD cuts modest three-day bounce back below parity.
EUR/USD failed to hold above parity on Monday and is falling after posting small gains in the previous three days. The pair reached 1.0029 in the Asian session, and in European hours it fell to 0.9964.
EUR/USD’s pullback on Monday brought it back to the range of previous sessions between 0.9950 and 1.0115. Key support for now is at the 0.9950 floor and a firm break of that level would expose 0.9910, leaving the Euro vulnerable. To the upside, the first resistance zone is at 1.0015 and then 1.0035 appears above. A confirmation above would give support to the euro for more rises.
EUR/USD’s early week decline is being fueled by a somewhat stronger dollar amid rising bond yields and a risk-off climate. The dollar index (DXY) is up 0.40% and is approaching weekly highs, trading above 110.00.
Monday, when it comes to economic data and events, will be the only quiet day of the week. A rise of 0.3% in construction spending in July was known in Europe and in the US there will be a placement of 3 and 6 month debt. Later in the week highlights the Federal Reserve decision on Wednesday and the European and US PMI figures on Friday, among other events.
Technical levels
Source: Fx Street
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