DXY remains pressured by U.S. fiscal concerns as EUR/USD and GBP/USD hold firm, although both pairs face major technical resistance.
Euro: Upside room toward 1.1800 against US Dollar – UOB
EUR/USD Price Forecast: Holds steady below 1.1700 as overbought momentum tempers further gains
Looking at the 4-hour chart, the pair settled above 1.1600, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair climbed above 1.1700 and traded as high as 1.1711 on TitanFX before it started a consolidation phase.
Euro holds steady against US Dollar amid US debt strategy
US long-end yields backed up late last week despite Treasury announcing larger buybacks of longer-dated bonds and Scott Bessent promising plans to consolidate the US fiscal trajectory. Yet rather than reigniting the dollar selloff, traders appear willing to give the Treasury Secretary the benefit of the doubt for now.
Last week's main theme has been a shift away from the US dollar towards currencies of economies with stronger fiscal positions and lower debt levels. The brief rally in long-dated US Treasuries helped fuel gains in gold and silver, while the Swiss franc also benefited from increased haven demand.
Currency analysts lift their near-term EUR/USD view and bring forward a 1.18 target as US debt-market worries put the US Dollar back on the defensive. The Euro to Dollar (EUR/USD) exchange rate ended the week around 1.1677 after a sharp mid-week jump carried the pair as high as 1.1711.
Dollar's selloff is not just about this week's Treasury buyback announcement. DXY has broken important support and is moving toward levels that could turn a medium-term decline into a much larger structural breakdown.
EUR/USD Price Forecast: Bulls test 1.1700 as RSI turns overbought
EUR/USD Weekly Forecast: US Dollar falls apart, what's next?
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