The US dollar has weakened after a significant two-day recovery.
The US Dollar (USD) has lost ground versus its key competitors after posting significant gains over the previous two trading days. Fears of a worldwide economic downturn appear to have diminished in light of the positive macroeconomic data releases from China. As a result, the Dollar is struggling to draw in investors as a safe haven.
The technical analysis of EURUSD indicates that the bullish bias is still present.
Although having ended over 102.00 on Monday, the US Dollar Index, which measures how the USD performs versus a basket of six major currencies, started to fall and fell towards 101.50.
After a two-day decline that had the pair dangerously close to 1.0900, EURUSD has found its footing early on Tuesday. The daily chart’s Relative Strength Index (RSI) indicator has retreated to the 60 range, which highlights the lack of seller interest. Moreover, the pair is still trading within the ascending regression channel that started in late September.
At 1.1000, there is immediate resistance for EURUSD (psychological level, static level). The pair may go for 1.1100 (psychological level, static level), 1.1160 (static level from April 2022), and 1.1200 after it confirms that level as support (psychological level).
On the downside, 1.0900 (20-day SMA) continues to serve as support before psychological threshold 1.0800, 50-day SMA 1.0760, and price targets of 1.0720. (100-day SMA).
