EUR/USD prints 4-week highs above 1.1850
- Euro gains from hawkish comments from ECB officials.
- US dollar falls despite risk-off and steady yields.
- EUR/USD up for the fourth day in a row.
The EUR/USD rose further following US economic data. Recently it climbed to 1.1857, the highest level since August 5. It remains near the top, on its way to the fourth consecutive daily gain and the first close above the 55-day SMA since June.
The combination of a slide of the US dollar across the board and a somewhat stronger euro boosted EUR/USD. The DXY is testing the monthly low at around 92.40, down 0.22%. The euro is also up versus the pound and the Swiss franc, following more hawkish comments from European Central Bank officials.
Economic data from the US came in mixed. The ADP employment report showed a gain of 374K in private jobs during August below the 613K expected. The ISM manufacturing index rose unexpectedly in August. The net impact on the greenback was negative. On Thursday, jobless claims data is due and on Friday the critical Nonfarm payrolls. In the Eurozone, producer inflation is due on Thursday.
From a technical perspective, the EUR/USD is testing the 1.1850 area and so far holding above a downtrend line (1.1845) that connects late June and July highs. A consolidation clearly above 1.1850 should keep the bullish tone in place. A correction below could point to exhaustion, suggesting a correction. The immediate support stands at 1.1810 followed by 1.1785.
Technical levels