EUR/USD rebounds and rises back above 1.3600

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The EUR/USD rose back above 1.3600 in the last hour and recovers after falling earlier to 1.3574, the lowest price since Monday. Despite the recent recovery the EUR/USD is still down for the day, as it trades at 1.3609, 0.13% below today’s opening price.

Recent moves in the EUR/USD, surging from 1.3583 to 1.3618, were accompanied by a decline of the US dollar across the board. But on a wider perspective price action in the pair remains limited.

EUR/USD supported by a weak USD

According to the Global Markets Research Team, from the Bank of Tokyo Mitsubishi UFJ, the euro is likely to weaken but only modestly against the US dollar in the week ahead. “We do not expect EUR/USD to break below pivotal technical support at around the 1.3500-level. The US dollar is likely to derive support in the week ahead from further evidence that the US economic recovery is strengthening in Q2”.

Analysts expect another solid Non-farm payrolls report in eight days but warned that the Fed’s dovish policy stance will likely “remain a dampener on potential upside for US yields and the US dollar in the near-term”.

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