EUR/USD Forecast: 1.1340 resistance could cap euro’s rebound.

EUR/USD has started to test 1.1300 after closing higher on Monday.Dollar stays on the back foot as risk mood improves.

The pair could find it difficult to overcome 1.1340 hurdle in the short term.EUR/USD has managed to register modest daily gains on Monday and stretched higher toward 1.1300 on Tuesday with the greenback struggling to find demand at the start of the holiday-shortened week. The lack of a fundamental driver behind the common currency’s modest strength suggests that technical resistances could limit the pair’s upside.

Safe-haven flows dominated the financial markets on Monday and falling US Treasury bond yields weighed on the greenback. Although the 10-year US Treasury bond yield staged a late rebound and helped the US Dollar Index pull away from lows, the improving market mood is forcing the greenback to stay on the back foot on Tuesday.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s