The risk-off sentiment remains in the markets this Monday, despite the encouraging news coming from China which was not enough to sustain the optimism registered during the Asian session.
EUR/USD - Daily time frame chart
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Create account Try a demo Download mobile app Download mobile appDuring this session, the US indices are pulling back, while the US dollar rebounds, putting pressure back on the euro.
On the daily chart, we can see that buyers are still struggling to stay above the top of the consolidation that was recently broken.
EUR/USD, D1 time frame chart. Source: xStation 5
On the other hand, on the chart of the US Dollar Index we can see that the price has retested an important support zone that in the past has served as a resistance zone and was responsible for the sideways move for several months in the index.
As long as the price remains above this support zone, the US dollar should continue to pressure the euro.
Dollar Index, Daily time frame chart. Source: xStation 5
USD is leading the gains this session.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
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