The greenback remains steady versus most rivals, staying around one-year peaks as the safe-haven demand persists
The euro is back threatening the 1.1760 area, a break below which would pave the way towards 1.1745, followed by the 1.1700 figure. On the upside, the 1.1800 level continues to act as the immediate target for euro bulls. Also on the negative side, the pair has settled below the key moving averages, suggesting the path of least resistance remains to the downside.
The common currency could stay on the defensive in the coming days, as the bid tone around the greenback keeps the pair under pressure. A slow pace of the vaccine rollout and fresh lockdown restrictions in many European economies continue to weigh on sentiment towards the euro, exposing it to further pullbacks in the short-term.
As for the greenback itself, the USD index remains steady versus most rivals, staying around one-year peaks as the safe-haven demand persists. The dollar trades with solid gains around the 93.00 figure despite yields of the key US 10-year Treasuries have lost some upside momentum. Of note, the index has broken the 200-day SMA in recent trading, adding to the upbeat tone surrounding the US currency.
Also, investor tone looks mixed and fragile at the start of the week. In part, the sentiment was weighed down by Credit Suisse shares, which slumped over 13% following a warning of significant losses from exiting positions after a U.S.-based hedge fund defaulted on margin calls.
The EURUSD pair was last seen trading just above the 1.1760 area, erasing Friday’s gains. The inability to make a decisive recovery above the 1.1800 figure adds to the negative tone surrounding the European currency. On the four-hour charts, the pair has been following the descending 20-SMA that capped bullish attempts one week ago. At the same time, the RSI both in the short-term and daily charts stays in the neutral territory, suggesting there is more room to the downside.
