EUR/USD testing highs near 1.1970

The greenback remains unable to gather lasting upside traction at the beginning of the week, motivating EUR/USD to extend its daily up move to the 1.1960/70 band, or daily tops.

EUR/USD bid on USD-weakness

Spot stays bid so far today amidst a broad-based selling bias surrounding the buck, which is hovering over daily lows when tracked by the US Dollar Index.

The up move in spot comes despite a quite positive performance from yields in the US money markets, where the key 10-year reference is toying with daily highs just below 2.22%, prolonging the strong rebound from monthly lows near 2.01% (September 8).

In the data space, final EMU’s CPI for the month of August matched the preliminary readings, with headline consumer prices rising 1.5% YoY and core prices up 1.2% over the last twelve months.

In the US docket, the NAHB index dropped to 64 for the current month, also missing prior estimates. Next on tap will be TIC flows during the month of July.

EUR/USD levels to watch

At the moment, the pair is up 0.21% at 1.1965 and a break above 1.1995 (high Sep.13) would target 1.2041 (high Sep.11) and finally 1.2092 (2017 high Sep.6). On the flip side, the immediate support aligns at 1.1910 (10-day sma) followed by 1.1839 (5-month support line) and finally 1.1837 (low Sep.14).