EUR/USD Pushes Higher As Investors' Mood Improves
The EUR/USD pair extends its recovery for a second straight day on Monday, moving away from parity and clinging to gains around 1.0150. Investors’ sentiment and risk impulses have dictated the trading pace as no relevant news was released.
At the time of writing, the EUR/USD is trading at 1.0145, posting a 0.57% daily gain, having hit an 11-day peak of 1.0201.
The US dollar struggles to find demand. The DXY index has extended its pullback from a 20-year high of 109.29 to below 107.00 before finding support. Additionally, the US 10-year yield hovers around 3% amid better market sentiment.
On the other hand, the euro could extend its recovery ahead of Thursday’s ECB meeting as there will be no releases of important data from the US and the eurozone. However, Lagarde will have to give investors good reasons and convince them that a 25 bps hike will be enough to contain the EU inflation. On the contrary, the monetary policy divergence with the Fed will likely weigh on the euro following the decision.
From a technical perspective, according to the daily chart, the EUR/USD holds a bearish bias, but indicators suggest that the pair could enter a consolidation phase in the following days. The RSI corrected from oversold readings and jumped to the 40.00 area, while the MACD prints lower red bars, indicating a deceleration of the selling interest.
The next resistance levels are seen at the 1.0200 mark, followed by the 20-day SMA, currently at 1.0310, and then the 1.0400 area. On the other hand, support levels are seen at 1.0100, followed by the parity level and the cycle low of 0.9952.
At the time of writing, the EUR/USD is trading at 1.0145, posting a 0.57% daily gain, having hit an 11-day peak of 1.0201.
The US dollar struggles to find demand. The DXY index has extended its pullback from a 20-year high of 109.29 to below 107.00 before finding support. Additionally, the US 10-year yield hovers around 3% amid better market sentiment.
On the other hand, the euro could extend its recovery ahead of Thursday’s ECB meeting as there will be no releases of important data from the US and the eurozone. However, Lagarde will have to give investors good reasons and convince them that a 25 bps hike will be enough to contain the EU inflation. On the contrary, the monetary policy divergence with the Fed will likely weigh on the euro following the decision.
From a technical perspective, according to the daily chart, the EUR/USD holds a bearish bias, but indicators suggest that the pair could enter a consolidation phase in the following days. The RSI corrected from oversold readings and jumped to the 40.00 area, while the MACD prints lower red bars, indicating a deceleration of the selling interest.
The next resistance levels are seen at the 1.0200 mark, followed by the 20-day SMA, currently at 1.0310, and then the 1.0400 area. On the other hand, support levels are seen at 1.0100, followed by the parity level and the cycle low of 0.9952.
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