- Euro post modest gains versus US Dollar, remains limited by 1.1330.
- Weaker greenback supports upside in EUR/USD.
The EUR/USD rose further after the beginning of the American session and reached a fresh daily high at 1.1330. As of writing, trades at 1.1325/28, holding a bullish intraday bias. The upside is being supported by a decline of the US dollar across the board.
The greenback is correcting after Friday’s rally. The DXY dropped from 96.65 to 96.44, trimming last week gains. Gold is rising sharply to fresh weekly highs while equity prices in Wall Street are mixed. Volatility in the currency market remains lows even in Pound’s crosses despite the statement from UK PM May that there is not support in the House of Commons to hold a third vote on her Brexit deal.
Earlier today, the euro received a boost following the German IFO report and then rose further on the back of a weaker US dollar. “The major short-term theme centers around the intersection of global growth and risk markets. There is a high noise to signal ratio in regards to the former, helping to contain volatility. The German Ifo, for instance, reduced some of the PMI-inspired worries, though it does little to alter the neutral trading stance of EUR/USD”, wrote TDS analysts.
EUR/USD Levels to watch
To the upside, immediate resistance is seen at 1.1330 followed by 1.1360 (100-day moving average) and 1.1390 (Mar 22 high). On the flip side, support could be located at 1.1305 (20-hour moving average), 1.1270/75 (Mar 22 low) and 1.1245 (Mar 8 high).