- The EUR / USD moves further and flirts with the monthly highs.
- Falling US yields keep the mood around the dollar depressed.
- Better-than-expected PMIs give extra wings to the pair.
The European currency retakes the bias offered and pushes the EUR/USD near monthly highs in the 1.2070 / 80 zone on Friday.
EUR / USD offered by the data, selling the USD
EUR / USD advances to 3-day highs and leaves behind Thursday’s pullback due to persistent dollar sell-off.
In fact, the dollar lost more ground on lower US yields, with the benchmark 10-year index hovering around multi-week lows around 1.53%.
With the ECB event now in the rearview mirror, the euro gained additional strength after euro zone flash manufacturing and services PMIs beat expectations for the current month.
Later in the session, Lagarde will participate in the panel “A Global Tipping Point: The Power of Global Capital Markets in Fighting Climate Change”.
What to look for around EUR
EUR / USD moved to new highs around 1.2080 before losing some traction amid resurgence in dollar demand and volatility from new coronavirus woes. The continuation of the rally has been supported so far by the renewed bias in the dollar along with investors shifting to the growth outlook in Europe now that the vaccine campaign appears to have gained serious momentum. In addition, strong key fundamentals and improving sentiment in the euro area of late also appear to bolster momentum around the single currency.
Technical levels
At the moment, the index is gaining 0.44% to 1.2066 and faces the next hurdle at 1.2079 (April 20 high) followed by 1.2243 (February 25 monthly high) and finally 1.2349 (January 6 high). On the other hand, a breakout of 1.1953 (50-day SMA) would target 1.1919 (200-day SMA) en route to 1.1762 (78.6% Fibonacci from the November-January rally).
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