And this is not limited to the euro. USD/JPY is down at 156.70 and GBP/USD is also approaching the 1.2800 mark so far this week. The greenback is in trouble as we head towards the end of the month. Here are some food for thought: the dollar sells the flavor of this end of the month – Barclays
But looking at EUR/USD we can see that technical parameters also play a role, as the daily chart shows:
EUR/USD daily chart
The pair is bouncing off its 100-day moving average (red line), after experiencing a rejection from its April high at 1.0885. The latter comes into play again as buyers will attempt to look for a daily close above this figure. In turn, this will help underline a more bullish conviction on such a breakout. As for sellers, they will look to defend this figure alongside bids closer to 1.0900 for now.
And these are the key technical levels in play right now for EUR/USD.
Coming back to the dollar, the better risk mood to start the new week is also helping to keep the greenback a little lower. US futures are again pointing a little higher, but of course we are still early in the week. End-of-month feeds and more US data in the second half of this week will be key factors to consider before all is said and done.
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