EUR/USD Current price: 1.0850
The EUR/USD pair trades at fresh one week highs this Monday, above the 1.0970 level, underpinned by broad dollar’s weakness. The American currency came under pressure on Friday, after soft inflation and retail sales figures put it in sell mode.
The decline extended during the Asian session amid a strong recovery in commodities, and in spite of poor Chinese inflation figures. The London opening brought further dollar declines, with no particular catalyst behind the move.
The US just released its NY Empire state manufacturing index, which showed that business activity fell to -1.0 against an expected 7.0 and below previous 5.2, pushing the pair higher ahead of Wall Street’s opening. Still pending of release in the US are the NAHB Housing market index and March TIC flows.
From a technical point of view and in the short term, the 4 hours chart presents a bullish stance, as technical indicators enter overbought territory, whilst the price advances beyond a key Fibonacci support at 1.0930 and its 20 and 100 SMAs, both advancing around 1.0890/900.
The pair has an immediate resistance just shy of 1.1000, followed by 1.1020, past week high. Above this last, the upward momentum could extend up to 1.1060 on continued dollar weakness.
Support levels: 1.0930 1.0890 1.0850
Resistance levels: 1.0995 1.1020 1.1060