EUR/USD extends gains above 1.1400 as US dollar tumbles

• From yesterday’s low, EUR/USD rose 120 pips. 
• US dollar having the worst day in months, GBP among best performers. 

The EUR/USD pair rose back above 1.1400 and climbed to 1.1423, reaching the highest level in a week. A day ago, the euro was trading at the weakest in 2 months, testing the 2018 low near 1.1300 and now is at the strongest in a week. From a day ago, the pair climbed more than a hundred pips. It is having the best performance in a month. 

The move to the upside was triggered by a sharp slide of the US Dollar across the board. The US Dollar Index (DXY) is falling almost 1%, at 96.22. The index on Wednesday peaked at 97.20, the highest since June 2017. 

Today’s USD slide could represent a short-term top for the greenback, pointing to further weakens or to some consolidation. Markets ignore today’s US data but tomorrow the NFP report could have a more significant influence. In Europe, the final reading of the Markit PMIs is due. 

US yields are modestly lower while Wall Street is rising. The Dow Jones was up 0.80% and the Nasdaq 1.45%. Among currencies, the New Zealand dollar and the pound were the best performers. The slide of EUR/GBP limited EUR/USD’s rally. 

EUR/USD - Levels to watch 

While above 1.1400, the bullish tone could remain intact. The immediate resistance could be seen at 1.1430 (Oct 16 low / Oct 25 high), followed by 1.1465 (21-day simple moving average) and 1.1490/95. On the flip side, support levels might be located at 1.1400, 1.1375/80 and 1.1355.