- The US Dollar extends slide following the release of US data.
- Stocks in Wall Street open higher, putting additional pressure on the Greenback.
- EUR/USD tests a short-term downtrend line and remains firmly above 1.0600.
The EUR/USD accelerated to the upside and climbed to 1.0667, reaching a fresh daily high. This upward movement gained momentum after the release of US data and the positive Wall Street opening.
Dollar remains under pressure
The US Dollar continues to be weighed down by an improvement in risk sentiment and a decline in Treasury yields. Additionally, economic data from the US has also affected the Greenback.
US economic figures came in below expectations, with Initial Jobless Claims rising to 217,000, the highest level in seven weeks, and Continuing Claims reaching the highest level since May. Another report showed a 0.8% drop in Unit Labor Costs during the third quarter, against expectations of a 0.7% increase.
The US Dollar Index fell to 105.80, the lowest level since October 24. The 10-year Treasury yield currently stands at 4.64%, the lowest in two weeks.
Bullish but facing resistance
The EUR/USD is currently testing a downtrend line near 1.0670, and if it breaks above this level, it could trigger further gains with potential exposure to 1.0700.
The bullish tone in the market is likely to persist as long as the pair remains above the 1.0580 level. On the 4-hour chart, the price is holding firm above key Simple Moving Averages, and technical indicators point to the upside.
4-hour chart
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Technical levels
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