EUR/USD Holds Recovery Below 1.0700 Ahead of Eurozone and US PMI
EUR/USD continues its recovery but remains below the 1.0700 level early on Tuesday. The pair benefits from the decline in US Treasury yields and the weakness of the US dollar. Positive changes in risk sentiment support the new upward trend. Keep an eye on EU/US PMI data.
The EUR/USD exchange rate accelerated its gains on Monday, surpassing the 1.0640 level. It continues to move further away from the 20-day Simple Moving Average (SMA), trending upwards. The daily chart indicates further potential for an increase, with significant resistance at the 55-day SMA around 1.0710.
On the 4-hour chart, the pair has broken a significant downtrend line, significantly improving the outlook for the Euro and indicating further potential for price increase. Although the price is still above 1.0595, there is a possibility of more significant gains. Below that level, support appears around 1.0550, represented by the upward trend line from the October lows. Conversely, above 1.0670, the next targets are 1.0695, followed by 1.0710 and 1.0760.
Short-term technical indicators suggest further upward movement; however, the Relative Strength Index (RSI) is currently above 70, indicating potential consolidation before another price increase. The EUR/USD exchange rate surged on Monday due to the weaker US dollar. The pair broke the downtrend line and rose to 1.0676, the highest level in a month. The outlook for the Euro remains favorable in the Asian trading session, although some consolidation might occur after a 100-pip increase.
The sharp decline of the US dollar pushed the EUR/USD pair on Monday. The 10-year US Treasury bond yield initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This sharp decline pushed the US dollar index down to 105.51, the lowest level of the day since September 22. Stocks on Wall Street showed mixed reactions as the drop in yields somewhat improved market sentiment.
Volatility continues to dominate the bond market ahead of significant issuances. On Tuesday, Eurozone and US PMI data are expected to be released. There is a slight improvement in Eurozone consensus and a slight decrease in the US. The European Central Bank (ECB) will hold a monetary policy meeting on Thursday, along with important US economic indicators such as GDP and the Federal Reserve's preferred inflation measure.
The EUR/USD exchange rate accelerated its gains on Monday, surpassing the 1.0640 level. It continues to move further away from the 20-day Simple Moving Average (SMA), trending upwards. The daily chart indicates further potential for an increase, with significant resistance at the 55-day SMA around 1.0710.
On the 4-hour chart, the pair has broken a significant downtrend line, significantly improving the outlook for the Euro and indicating further potential for price increase. Although the price is still above 1.0595, there is a possibility of more significant gains. Below that level, support appears around 1.0550, represented by the upward trend line from the October lows. Conversely, above 1.0670, the next targets are 1.0695, followed by 1.0710 and 1.0760.
Short-term technical indicators suggest further upward movement; however, the Relative Strength Index (RSI) is currently above 70, indicating potential consolidation before another price increase. The EUR/USD exchange rate surged on Monday due to the weaker US dollar. The pair broke the downtrend line and rose to 1.0676, the highest level in a month. The outlook for the Euro remains favorable in the Asian trading session, although some consolidation might occur after a 100-pip increase.
The sharp decline of the US dollar pushed the EUR/USD pair on Monday. The 10-year US Treasury bond yield initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This sharp decline pushed the US dollar index down to 105.51, the lowest level of the day since September 22. Stocks on Wall Street showed mixed reactions as the drop in yields somewhat improved market sentiment.
Volatility continues to dominate the bond market ahead of significant issuances. On Tuesday, Eurozone and US PMI data are expected to be released. There is a slight improvement in Eurozone consensus and a slight decrease in the US. The European Central Bank (ECB) will hold a monetary policy meeting on Thursday, along with important US economic indicators such as GDP and the Federal Reserve's preferred inflation measure.
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