EUR/USD breaks higher and rises toward 1.2200

• DXY drops back under 90.00 as US yields slide.  
• EUR/USD rises back above the 20-day moving average.

The EUR/USD traded during most of the day in a small range and broke to the upside during the American session and climbed toward 1.2200. The euro is now rising for the second day in a row versus the US dollar and is back above the 20-day moving average.

As of writing, EUR/USD trades at daily highs at 1.2195, almost a hundred pips above Friday’s. The rebound took place amid a decline of the US dollar across the board. The greenback has been unable to recover from the NFP report released on Friday that triggered a slide.

US yields are at fresh daily lows, with the 10-year yield at 1.56%, far from the daily high of 1.58%. In Wall Street, the Dow Jones is falling by 0.31% and the Nasdaq by 0.08%. Despite the deterioration in risk sentiment, the dollar remained under pressure.

EUR/USD back above the 20-SMA

The rally of the last two days of EUR/USD pushed the price back above the 20-day moving average that stands at 1.2175. On the upside, the immediate resistance is seen at 1.2200 followed by 1.2225. A daily close above 1.2230 would point to further gains. On the flip side, a slide under 1.2150 would negate the current reversion, leaving the 1.2100 area exposed.

Technical levels