Forex Opinion & Analysis

EUR/USD Pushes Higher As ECB Forum Gets Underway

The EUR/USD pair pushed higher on Monday and closed with gains for the second session in a row as the greenback weakened across the board.

The pair reached a daily high of 1.0614 but failed to consolidate above 1.0600 and pulled back during the New York session. At the time of writing, the EUR/USD is trading around 1.0580, up 0.25% on the day.

The euro moved higher, underpinned by the rise in German yields, while the greenback exhibited weakness across the board despite the advance in US yields. Wall Street indexes had a positive start but turned south and closed in the red.

Market participants continue to assess the impact of monetary policy on employment and growth as major central banks have embarked on contracting cycles. Meanwhile, the European Central Bank Forum on Central Banking got underway in Portugal, with the main focus on Wednesday’s policy panel that will feature ECB, BoE, and Fed leaders.

EUR/USD daily chart.

From a technical perspective, the EUR/USD holds a slightly positive short-term bias according to the daily chart. However, the inability to establish itself above 1.0600 indicates a lack of momentum. If the euro breaks above the psychological level, it will face key resistance at a descending trendline from February’s highs, currently around 1.0650. A rise past this trendline would improve the pair’s short-term outlook.

On the other hand, the immediate support level is seen at daily lows in the 1.0550 area, followed by the 1.0500 mark and then the 1.0470 zone.

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