- The euro extends the rise against the US dollar and reaches monthly highs.
- If it sustains above 1.1830, the EUR / USD could extend the gains during the next sessions.
The pair EUR/USD has extended the upward movement and has risen above 1.1830, reaching the highest level in four weeks. The pair remains close to the daily highs, consolidating the significant daily gains supported by a weaker US dollar in all fields.
The DXY US Dollar Index is testing the October low at 93.00, falling 0.45% on the day, while the Dow Jones is up 0.68% and the Nasdaq 0.30%. The US dollar has weakened against all its rivals, spreading losses against the euro and the Swiss franc and cutting gains against emerging market currencies and commodities.
The drop has come as investors expect the results of the negotiations for a new round of fiscal stimulus in the US. Economic data has shown a rebound in building permits and housing starts, but they have been ignored by market participants.
EUR / USD levels
EUR / USD is rising for the third day in a row, consolidating for the time being above the previous monthly high, suggesting more strength going forward. It peaked Tuesday at 1.1840, the highest level since Sept. 21. The next resistance level could be seen around 1.1870, followed by 1.1900 and 1.1920.
A pullback below 1.1830 could suggest that the euro is not poised for further gains. Support levels can be seen at 1.1795 and 1.1755. Critical support is at 1.1695. A consolidation below this region would open the doors to further losses.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
