Euro tries to recover against the US dollar

12:35 PM 5 April 2021

Today's session can be relatively smooth due to the lack of volatility. Markets in Europe, China and Australia will be closed on Monday for holidays. The economic calendar is also relatively quiet, however, the ISM Services PMI in the US will be the big event for today's session and could have an impact on the US dollar (USD).

If we take a look at eur / usd on the 1-hour time slot chart, we can see that the euro is trying to recover against the USD. The uptrend line and the Fibonacci retracement levels at 61.8% are supporting the bullish momentum in the short term and may increase if the price breaks above EMA 50 (blue line).

 

Eur/usd, timeframe H1. Source: xStation 5

On the other hand, we can take a look at the Volatility Index of the S&P 500 (VOLX) which gives us an interesting view of the market. For the first time since February 28, 2020, the price has dropped below 20%, which could give us a bullish signal on the S&P 500 index which relieves some bullish pressure on the US dollar.

 

VOLX, Daily chart. Source: xStation 5

 

GBP is the best performing major currencies while EUR and CHF lag the most

Source: currency-strength.com

Henrique Tomé
XTB Portugal

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