In the early hours of Tuesday's Asian trading session, the EUR/USD pair rose above the 1.0600 mark. This significant increase, reaching its highest level in a month, was supported by a weakened US Dollar. EUR/USD is currently trading at 1.0670, a minor decrease of 0.01% for the day.
The EUR/USD exchange rate gained momentum on Monday, surpassing the 1.0640 level. It continues to move further away from the 20-day Simple Moving Average (SMA), trending upward. The daily chart indicates the potential for further upward movement, with a notable resistance level around the 55-day SMA at approximately 1.0710.
On the 4-hour chart, the pair broke a crucial downtrend, significantly improving the Euro's outlook and indicating further potential for price increase. Although the price remains above 1.0595, there is room for further upward movement. Below this level, support emerges around 1.0550, represented by the upward trend line from the October low. Conversely, above 1.0670, the next targets are 1.0695, followed by 1.0710 and 1.0760.
Short-term technical indicators suggest the possibility of further increases. However, the Relative Strength Index (RSI) currently stands above 70, indicating potential consolidation before another upward movement.
The sharp decline of the US Dollar drove the EUR/USD pair higher on Monday. The US 10-year Treasury bond yields initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This decline pushed the US Dollar index down to 105.51, the lowest level of the day since September 22nd. Stock prices on Wall Street showed mixed reactions, improving market sentiment to some extent due to the decrease in yields.
Market volatility continues to dominate the bond market ahead of significant issuances. On Tuesday, Eurozone and US PMI data are scheduled for release. There is a slight improvement in consensus in the Eurozone and a slight decrease in the US. The European Central Bank (ECB) will hold its monetary policy meeting on Thursday, along with key US economic indicators such as GDP and the Federal Reserve's preferred inflation measure.
The EUR/USD exchange rate gained momentum on Monday, surpassing the 1.0640 level. It continues to move further away from the 20-day Simple Moving Average (SMA), trending upward. The daily chart indicates the potential for further upward movement, with a notable resistance level around the 55-day SMA at approximately 1.0710.
On the 4-hour chart, the pair broke a crucial downtrend, significantly improving the Euro's outlook and indicating further potential for price increase. Although the price remains above 1.0595, there is room for further upward movement. Below this level, support emerges around 1.0550, represented by the upward trend line from the October low. Conversely, above 1.0670, the next targets are 1.0695, followed by 1.0710 and 1.0760.
Short-term technical indicators suggest the possibility of further increases. However, the Relative Strength Index (RSI) currently stands above 70, indicating potential consolidation before another upward movement.
The sharp decline of the US Dollar drove the EUR/USD pair higher on Monday. The US 10-year Treasury bond yields initially rose above 5.00% but quickly reversed, dropping sharply to 4.84%. This decline pushed the US Dollar index down to 105.51, the lowest level of the day since September 22nd. Stock prices on Wall Street showed mixed reactions, improving market sentiment to some extent due to the decrease in yields.
Market volatility continues to dominate the bond market ahead of significant issuances. On Tuesday, Eurozone and US PMI data are scheduled for release. There is a slight improvement in consensus in the Eurozone and a slight decrease in the US. The European Central Bank (ECB) will hold its monetary policy meeting on Thursday, along with key US economic indicators such as GDP and the Federal Reserve's preferred inflation measure.
