Today's session is again highlighted by the weakness of the US dollar against the rest of the major currencies.. While 10-year yields are falling, and remain a key factor behind the weakness of the US dollar.
The pair EUR / USD has extended gains and recently broke the mark of 1.2.
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Create account Try a demo Download mobile app Download mobile appIf we take a look at eur/usd in the daily time interval chart, we can see that the pair is getting a bullish momentum after having managed to break the old consolidation zone and the important key level in the 1.2 zone. The formation of the daily candle will be important to understand whether the bullish momentum will remain in the pair towards the downtrend line (gray line), close to the 1.21 zone.
Furthermore, looking at the RSI indicator, we can see that the price is not yet showing signs of overbought.
Eur/usd, Daily (D1) time frame chart. Source: xStation 5
On the other hand, if we take a look at the US dollar index (USDIDX), we can see that the price remains under pressure and the bearish momentum continues after the breakout of the 50 EMA on the daily time frame chart.
USDIDX, Daily (D1) time frame chart. Source: xStation 5
GBP is the best performing major currencies while USD and CAD lag the most
Source: currency-strength.com
Henrique Tomé, XTB Portugal
