Home / Market Update / Forex Market / EUR/USD hits two weeks highs

EUR/USD hits two weeks highs

The EUR/USD pair surged further during the US session and climbed to 1.0614, reaching the highest level in two weeks. The euro pulled back under 1.0600. It is holding onto daily gains, still unable to consolidate above 1.0600.

Risk sentiment improvement weakened the US dollar. The Dollar Index is falling 0.25% on Monday, trading at 103.85. US bond yields are modestly higher but European yields rose even further. The German 10-year yield jumped 7% to 1.54%. The divergence helped EUR/USD move higher.

US economic data came in above expectations with Durable Goods Orders and Pending Home Sales rising more than market consensus. The dollar did not benefit from the numbers. On Thursday, the Core PCE is due.

In Portugal, the European Central Bank started its annual conference. The highlight will be on Wednesday with a panel including ECB President Lagarde, Bank of England’s Governor Bailey and Fed’s Chair Powell.
Bullish short-term outlook

The EUR/USD is trading above 1.0580, but is showing difficulties running above 1.0600. The euro is back above the 20-day Simple Moving Average (1.0588). A daily close above 1.0600 should strengthen the recovery. The 55-day SMA awaits at 1.0620.

A decline under 1.0580 would alleviate the bullish pressure. The next support might be located at 1.0530 followed by 1.0490.

Check Also

Wall Street Rallies Following Surprise NFP Report

Wall Street roared to life on Friday, propelled by a surprisingly weak October jobs report. …