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
Start investing today or test a free demo
Open account Try 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
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
