EUR/USD nears two-week high as dollar eases back

And it’s not just limited to the euro. USD/JPY is down to 156.70 and GBP/USD is on approach to the 1.2800 mark as well so far this week. The greenback is struggling as we start to head towards month-end. Here’s some food for thought: Dollar selling the flavour for this month-end – Barclays

But looking at EUR/USD, we can see that the technicals are also playing a part as evident on the daily chart:

The pair is bouncing off its 100-day moving average (red line), after having seen a rejection from its April high at 1.0885. The latter is once again coming into play as buyers will try to hunt for a daily close above that. In turn, that will help to underscore a more bullish conviction on such a break. As for sellers, they will be looking to defend that alongside offers closer to 1.0900 for now.

And those are the key technical levels in play right now for EUR/USD.

Circling back to the dollar, the better risk mood to start the new week is also helping to pin the greenback a little lower. US futures are pointing a little higher again but it is still early in the week of course. Month-end flows and more US data in the second half of this week will be key factors to be mindful of before all is said and done.

This article was written by Justin Low at www.forexlive.com.