EUR/USD jumps to four-week highs above 1.1360 as US dollar tumbles
- US dollar drops across the board, DXY falls under 96.00, to lowest in four weeks.
- US yields at monthly highs, not helping the greenback.
- EUR/USD testing levels above upper limit of current range.
The EUR/USD gained strength after the beginning of the American session on the back of a slide across the board of the US dollar and climbed to 1.1368, reaching the highest level since November 30. A daily close above 1.1350 should be a positive technical development for the euro and the highest close in a month.
USD down, EUR/USD attempts to break range
The decline of the dollar is boosting EUR/USD above a range that has been in place for a month. A consolidation above 1.1360, should point to an extensions of the recovery of the euro.
On the contrary, if EUR/USD is rejected again from the current level, the sideways trading pattern around 1.1290 would remain intact. A daily close under the 20-day moving average, currently at 1.1300, would weaken the short-term outlook.
The greenback weakened even as US yields jumped. The US 10-year stand at 1.53%, up almost 4% and the 30-year at 1.95%, at the highest in a month. In Wall Street, equity prices are mixed, with the Dow Jones un 0.22% and the Nasdaq slides 0.08%.
Economic data released on Wednesday in the US showed Pending Home Sales dropped 2.2% in November, against expectations of a 0.5% increase. A different report showed the advance Goods Trade deficit widened to 97.8 billion dollars in November, from the 83.2 billion of the previous month.
Low volume across financial markets continues to be the key essence of the last week of trading of the year. On Thursday, the key economic number will be US jobless claims.
Technical levels