EUR/USD moved off session highs during the last hours, as the US dollar recovered part of the lost ground across the board. Greenback dropped sharply earlier after US personal income and spending report.
The decline of the dollar boosted EUR/USD that peaked during the American session at 1.1219, the highest level since Wednesday. Recently it pulled back finding support above 1.1185. It was hovering around 1.1200, up 40 pips from Friday’s closing price.
So far the euro is rising versus the US dollar after falling during the previous six trading days.
EUR/USD levels and events to watch
Volatility in the forex market increased today, particularly after US data. On Tuesday, it could continue to rise further with Janet Yellen’s speech and ahead of Friday’s NFP report.
Despite losing ground every day during last week, EUR/USD still remains above the 20-day moving average and also it held a bullish bias. The upside continuities to be limited by 1.1300 – 1.1330; a consolidation on top could open the doors for an extension to 1.1450 – 1.1500. On the flip side, under 1.1100, the US dollar could gain momentum for a short-term rally.
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(Market News Provided by FXstreet)