Euro Rallies Then Falls Against the Dollar at Critical Support Level

The euro today rallied to new daily highs against the US dollar early in the European session driven by positive investor sentiment before giving up its gains later. The EUR/USD fell back at a critical resistance level as sellers stepped in, and the greenback staged a comeback clawing back its losses.
The  EUR/USD currency pair today rallied from a  low of  1.0809 to  a  high of  1.0888 before reversing and  falling back to  trade almost flat for  the  day and  was trading sideways at  the  time of  writing.
The  currency pair rallied higher in  the  early European session as  investors were hoping that many European countries would reopen their economies. The  release of  Spain’s upbeat unemployment report for  Q1 by  the  National Institute of  Statistics boosted the  pair as  the  print came in  at  14.41% versus the  expected 15.6%. However, the  rally peaked as  it emerged that the  easing of  lockdown measures was going to  be a  gradual staggered process. France announced that it would reopen restaurants and  schools on  May 11, and  Germany’s reopening suffered a  setback in  the  form of  higher infections.
The  release of  disappointing US goods trade balance report for  March by  the  Census Bureau led to  higher demand for  the  greenback as  tracked by  the  US Dollar Index, which triggered the  pair’s decline. The  US recorded a  $64.22 billion deficit as  compared to  the  expected $-62.67 billion print.  
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple European releases and  COVID-19 updates.
The  EUR/USD currency pair was trading at  1.0823 as  at  20:40 GMT, having dropped from a  high of  1.0888. The  EUR/JPY currency pair was trading at  115.67 having fallen from a  high of  116.27.

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