The EUR/USD has starred in a significant rebound after the start of the American session. The pair has risen more than 30 pips, rising to new two-day highs at 1.2099.
The main reason for the rebound to the upside is the sudden weakness of the dollar before the monetary policy announcement of the Federal Reserve of the United States. The greenback measured by its DXY index has fallen to 90.79, its lowest level since April 26. Yields on US 10-year bonds remain positive at this time, around 1.63%.
European stocks are about to close with modest gains. The German DAX rose 0.35%, while the French CAC 40 gained 0.60% and the Eurostoxx 50 advanced a slight 0.14%. For their part, the US indices are mixed, with the Dow Jones falling 0.32% and the S & P500 gaining 0.10%.
At 18:00 GMT, the US Federal Reserve will publish its monetary policy decision. Although no changes in interest rates are expected, there could be some hint of an adjustment in the bond purchase program, which could move the markets.
EUR / USD levels
With the pair trading at the time of writing above 1.2096, gaining 0.06% daily, the first resistance appears in the psychological zone 1.2100. If exceeded, the target will be at 1.2116, the April 26 high, before jumping to 1.2243, the February 25 high and the last three and a half months.
On the downside, initial support is around 1.2055, where today’s and yesterday’s lows are. A break could see the cross fall to 1.2000 before dropping towards 1.1942, the bottom of April 19 and the last 15 days.
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