- Relatively calm markets favor limited tours.
- The EUR/USD advances supported by a general fall in the dollar.
- Bullish momentum loses steam after approaching 1.0250.
The EUR/USD is rising on Tuesday, although it has moderated the advance after reaching as high as 1.0247, the maximum in two days. It is trading below 1.0230, after paring gains.
The financial markets are showing a certain calm, which contributes to the fact that price movements are limited.
A general decline in the dollar explains the rise in EUR/USD. The Dollar Index (DXY) loses 0.22%, although it managed to hold above 106.00. The greenback saw downward pressure eased recently on a modest rise in Treasury yields. The 10-year bond yields 2.79% and the 30-year tranche returned over 3.00%.
The economic calendar is light on Tuesday. Non-agricultural productivity figures will be released in the US Wednesday will already be a busy and key day, with the focus on inflation data from China, the Eurozone and the US.
The euro was not significantly affected by Moody’s cut Italy’s debt outlook to negative (reaffirms Baa3 rating) on ​​Monday. The 10-year Italian bond yield stands at 3.05%.
follow the range
The EUR/USD continues to move within a wide range which has two key supports: the 1.0100 area and the 20 day moving average today at 1.0175. Below 1.0100 the parity zone could be given a test.
To the upside, the pair faces first resistance at 1.0250 and then another at the 1.0280/1.0300 area. A close on the latter would enable further gains in the short term for the euro.
Technical levels
Source: Fx Street
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