EUR/USD finds resistance at 1.0630 and retreats

A weak US dollar in the market boosted the EUR/USD pair to fresh highs. It broke above 1.0620 and climbed to 1.0630 reaching the strongest levels since Friday. The pair then pulled back and it is trading at 1.0615, 20 pips above yesterday’s closing price. 

The euro still holds a bullish tone against the US dollar, but so far, the rally eased around the strong barrier located between 1.0630 and 1.0640; a break of that area could lead to an acceleration. While if the pair drops back under 1.0595/1.0600 (20-hour moving average) the intraday tone could change to bearish. 

Stocks down, Bonds up 

European currencies are rising in the market while the yen is outperforming, boosted by rising US bonds and a decline in stocks markets. In the US, the Dow Jones is falling 0.46% while the Nasdaq drops 0.71%. 

Wall Street opens weak on risk aversion

To the upside, immediate resistance is seen at 1.0640 (Apr 3 low) followed by 1.0665 (April 7 high) and 1.0700 (psychological). On the downside, support could be located at 1.0595 (20-hour MA), 1.0565/70 (weekly low) and 1.0535 (Feb 23 low).